This chapter explains how successfully building and managing a position is the most important aspect of basis trading for an elevator. A position represents the net long or short amount of bushels accumulated in a commodity accounting for both physical cash ownership and futures purchases and sales. Knowing when and how much to be long or short commodities with respect to each delivery period ultimately dictates the profitability of an elevator.

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Building and Managing a Position

  • Chris DeLong,
  • Andrew McKenzie,
  • Thomas Meierotto

摘要

This chapter explains how successfully building and managing a position is the most important aspect of basis trading for an elevator. A position represents the net long or short amount of bushels accumulated in a commodity accounting for both physical cash ownership and futures purchases and sales. Knowing when and how much to be long or short commodities with respect to each delivery period ultimately dictates the profitability of an elevator.