Glossary
Basis Risk
Basis risk is the risk that two related prices (such as spot and futures, or two similar assets) move differently, reducing the effectiveness of hedges.
Plain-English meaning
Basis Risk is used here to describe mismatch between related prices. In the daily board, the word is grouped by the role it performs rather than by spelling or market popularity.
You may encounter it in a product interface, technical document, risk report, policy paper, or market dashboard. The term is included for recognition and comparison, not as a product recommendation.
Why it belongs with Balance Sheet Risk
These terms describe exposure and resilience concepts used in risk management for portfolios, treasuries, and counterparties.
When solving the puzzle, compare the job this term performs with nearby cards. A correct group usually shares a function, risk type, workflow, or market structure rather than simply sharing similar wording.
Where you might see it
You might encounter this term while reading educational explainers, product documentation, risk disclosures, market dashboards, or beginner guides. Always separate vocabulary learning from financial decision-making.