Basis

"Basis" in financial and investment terminology refers to the difference between the spot price of an asset and the future price of the same asset. It is a concept used mainly in futures trading to indicate the price discrepancy that can exist between a futures contract and the underlying asset's market price.

A positive basis means the futures price is higher than the spot price, which is called "contango," whereas a negative basis indicates that the futures price is lower, known as "backwardation."

In accounting and taxation, "basis" is the value used to calculate gain or loss for tax purposes when assets are sold.