Generally speaking, the hedging bas

Generally speaking, the hedging basis risk is not only generated by the change of the futures price, but is related to the fluctuation of both the spot price and the futures price. It is a kind of relative spread fluctuation. Basis risk not only brings opportunites and conditions to speculators in futures market, but also makes farmers face potential risks by using grain futures for hedging. Because of the strong leverage effect of the grain futures market, the risks faced by the main body of the grain futures trade are often magnified. Therefore, in order to ensure the interests of the hedgers of grain futures and give full play to the risk avoidance function of grain futures market, it is particularly important to make an in-depth analysis of the influencing factors of the risk of grain futures basis and put forward the prevention countermeasures of the risk of grain futures basis.