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. Academic. 2012.
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Basing Point Pricing System — A pricing system in which the buyer pays a base price plus a set shipping price depending on the distance from a specific location. The basing point pricing system sets a predetermined location, known as the basing point, then adds a… … 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
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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