## What is the Difference between "Carry Basis" and "Value Basis"?

The portion of the basis representing the CoC is called "carry basis".

The difference between the forward price and cash price is also influenced by current supply and demand structures.This difference is denoted as "value basis".

In case of a strong excess demand – more buyers than sellers on the futures market – the futures price will rise against the cash price. Wrong evaluations can now be used to do arbitrage.

**Basis = Carry Basis + Value Basis**

Difference between cash price and forward price.

Portion of the basis representing the cost of carry.

Portion of the basis representing the current information situation, together with the supply and demand structures (overvaluation and undervaluation).