Basis Percentages and Prop Targets: Equal Numbers, Different Bases
A basis percentage can look identical to a profit target while measuring something else. One compares specified market prices; the other refers to an account definition. Name the base and observation window before linking the figures.
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Write both fractions before comparing them
For a fictional spot reference 100 and matching future 105, relative basis is(105−100)/100 =5%. In a separate teaching account with reference 10,000 and target amount 500, the target fraction is 500/10,000 =5%. The matching percentages do not make the amounts interchangeable.
The basis needs contract identity, price fields and time. The account target needs the purchased rule and actual account reference. Missing either definition leaves the comparison incomplete even when the two headline numbers are easy to read.
Keep an original spread scenario narrow
At a supplied quantity of 0.5 base units, the five-quote-unit difference per base unit represents 2.5 quote units in a simple static arithmetic comparison. It is not 500 account units, a confirmed profit or a return that can be captured without costs and risk.
No coordinated hedge or pair of evaluation accounts is suggested. Execution, financing, price changes, settlement and the actual permitted method would all need their own evidence. A futures label also does not establish access to the precise instrument used by the fictional quote.
| Measure | Fraction | Meaning |
|---|---|---|
| Relative basis | (105−100)/100 | 5% of spot reference |
| Separate target fraction | 500/10,000 | 5% of account reference |
| Static quantity comparison | 0.5 ×5 | 2.5 quote units before any real activity |
| Actual evaluation progress | Account evidence absent | Not established by basis |
Keep the account ledger as the account evidence
This site’s earlier basis-units resource remains the companion. For a Singapore journal, retain the original instant and full price units before any local display. A basis observation cannot fill missing account executions or change a provider’s loss definition.
The optional sponsored HashHedge link introduces current programme conditions. The example promises no convergence, pass or payment. It provides a way to avoid mistaking a market-price relationship for progress already achieved in an evaluation.
Sources and rule dates
- HashHedge: challenge types
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: instruments and position limits
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established. - HashHedge: terms and conditions
Checked 2026-10-23. Selected published description only. Worked numbers and event records are fictional; no actual provider account, search result, live price, eligibility or payment is established.