Hedge Funds Have Made Billions From This (This Could Get Ugly)
Eurodollar University
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Understanding the Basis Trade and Its Significance in the Global Monetary System
This chapter explores the basis trade in the global monetary system, explaining how it works and its significance. It discusses the emergence of hedge funds as key players in taking advantage of the arbitrage opportunity created by the overvaluation of the futures market compared to the cash market, and highlights the importance of comprehending the basis trade for the financial system.
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