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PART 1: CORE SKILLS OF BASIS TRADING
Gain an understanding of the fundamental concepts and
practices of basis trading.
- Learn how a basis trading operation makes its money.
- Converse in the language of basis trading.
- Carry out basis transactions, including the execution of buy
basis, sell basis and spreading activities.
- Do proper and accurate basis calculations.
- Identify basis patterns and evaluate basis risk.
- Aid in the administration and execution of long-the-basis
positions.
- Aid in the administration and execution of short-the-basis
positions.
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As administrative assistant to the grain merchandiser I will use the knowledge
and skills I’ve acquired to assist the merchandiser in
making profitable
decisions.
Karen Bowns
Morning Star Grain LLC
Lennon, MI |
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PART 2: BASIS TRADING ADMINISTRATION
Develop a working knowledge of the proper procedures and
routines involved in the execution and administration of a grain company’s daily
basis trading activities.
- Identify and evaluate the company’s price risk position.
- Execute appropriate futures transactions based on company
hedging policies.
- Reconcile statements of cash and futures positions.
- Calculate financial requirements and needs of cash and futures
positions.
- Identify and evaluate the company’s basis risk position.
- Gain an understanding and appreciation for real world grain
merchandising.
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Today I have a much better understanding of basis, merchandising, identifying
profitable opportunities, daily position, futures statements and linking all
these things together for a full picture. This course has helped to give
me a better understanding, but most importantly it has given me confidence.
Karen Taylor
Grain Merchant
Morrisonville Farmers Cooperative
Morrisonville, IL |