Price Basing

A method of pricing commercial commodity transactions that bases these prices on related futures contract prices. This method is used by commodity producers, processors, merchants and consumers.

Using futures contracts with similar underlying commodities as a pricing benchmark for commercial commodity transactions allows smaller participants in the commercial market for commodities to factor-in different variables. Price basing permits these individuals and companies to reach a more informed price without the related cost of research.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • Basing Point — A specific location used in the basing point pricing system. Usually, the basing point is where the manufacturing of a product or production of a commodity takes place. Once set, the manufacturer will quote the base price plus a set shipping cost …   Investment dictionary

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  • base price — noun Etymology: base (III) 1. : a price for a standard commodity from which variations are readily computed (as by a formula) 2. : a price before discounts and extras * * * 1. a price quoted as a base without including additional charges. 2. a… …   Useful english dictionary

  • delivered price — noun : a price for which a seller agrees to deliver merchandise to a purchaser at a designated place and which usually includes the f.o.b. price at the shipping point plus lawful transportation charges actually incurred in delivery * * * a quoted …   Useful english dictionary

  • base price — 1. a price quoted as a base without including additional charges. 2. a price used as a basis for computing freight charges at a basing point, as for steel. * * * …   Universalium

  • delivered price — a quoted price of merchandise, as steel, that includes freight charges from the basing point to the point of delivery, usually f.o.b. * * * …   Universalium

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