We found 11 online brokers that are appropriate for Trading Basis Risk Investment Platforms.
Basis risk is a financial risk associated with imperfect hedging because of the characteristics or variables that affect the futures contract and underlying cash difference. No price changes would be witnessed. The correlation between the two investments is imperfect and the potential for excess profits or losses are created. Risk is added to the position.
Offsetting vehicles have similarities with the investment structure being hedged. However, some differences are a cause of concern. If an individual looks to hedge against a two-year bond by purchasing Treasury bill futures, he may run into a risk if the two fail to fluctuate in a similar pattern.
He may look to quantify the basis risk level by subtracting the asset's current price being hedged with the futures price of the contract. If the oil price is $55 a barrel while the futures contract is $54.98, the basis here is $0.02. When the quantities of shares or contracts are huge, the profits or losses can be impacted by the risk pattern.
It is impossible to eliminate risk in an investment. However, it is possible to mitigate the risk. Investors, therefore, enter into a futures contract to reduce the risk of loss from price fluctuations. They change the inherent risk into another form, at least to some extent.
Basis risk is also a systematic risk which is simply the risk of the inherent uncertainty of the market. The risk associated with a specific investment is called a non-systematic or unsystematic risk.
Some of the examples of systematic risk are depression or general economic turndown. If Amazon loses the market share to a rival online retail company, it is called unsystematic risk.
In time, a futures position is opened and closed. The spread may be narrow or wide between the spot and futures price. Commonly, the basis spread becomes narrow when the contract reaches near expiration. The futures price during this period generally converges toward the spot price. However, this is not always guaranteed.
If the futures contract prices and assets fail to move in an identical pattern, it is called price basis risk.
If the underlying assets and the futures contract are not in the same location, it is called location-based risk. Example: The basis between crude oil sold in country A and futures of the same trade on country B's futures exchange may not be the same.
Sometimes, the sale dates may be different from futures expiry dates. It is called calendar basis risk. If the RBOB gasoline futures on the NYMEX expire on March 31 while the delivery date is April 30, it is a calendar-based risk. However, the discrepancy is just for a short period.
If the qualities of the underlying asset differ from that represented by the futures contract, it is called product quality basis risk. Jet fuel is often hedged with the low sulfur diesel fuel or crude oil as these are more liquid than the derivatives on jet fuel. The companies that hedge understands the risk and accepts it.
Basis risk is associated with a futures hedging strategy. The inherent risk takes place while hedging a contrary position in a derivative of the underlying asset. In other words, it is associated with a futures hedging strategy.
It is important to note that basis risk is also called systematic risk as it arises from inherent uncertainty of the market. The risk associated with a specific investment like Amazon or Apple is called unsystematic or non-systematic risk.
We have conducted extensive research and analysis on over multiple data points on Basis Risk to present you with a comprehensive guide that can help you find the most suitable Basis Risk. Below we shortlist what we think are the best Basis Risk Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching Basis Risk.
Selecting a reliable and reputable online Basis Risk Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Basis Risk Investment Platforms more confidently.
Selecting the right online Basis Risk Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Basis Risk Investment Platforms trading, it's essential to compare the different options available to you. Our Basis Risk Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Basis Risk Investment Platforms broker that best suits your needs and preferences for Basis Risk Investment Platforms. Our Basis Risk Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Basis Risk Investment Platforms.
Compare Basis Risk Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Basis Risk Investment Platforms broker, it's crucial to compare several factors to choose the right one for your Basis Risk Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Basis Risk Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Basis Risk Investment Platforms that accept Basis Risk Investment Platforms clients.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 1,000,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, cTrader, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 75-95 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare Basis Risk Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Basis Risk Investment Platforms for 2024 article further below. You can see it now by clicking here
We have listed top Basis Risk Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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