A method of documenting a trade whereby the buyer and seller agree to determine a future cash price for the transaction. Both parties agree upon the formula to be used, then, at the time of the trade, the current futures price is used as the variable in the formula to calculate the actual price.
Related information about booking the basis:
- Booking the Basis Definition | Investopedia
An arrangement made between a buyer and seller giving either party the ability, at some future date, to determine the cash price of the forward sales agreement.
- Booking the Basis - Financial Dictionary - The Free Dictionary
In some forward contracts, an agreement between a buyer and a seller allowing one or the other to determine the price of the underlying asset described in the ...
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booking offices. Booking photo · Booking photograph · Booking Services International · Booking the Basis · Booking Value · Booking, Billing, Backlog · bookings ...
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- What is booking the basis? definition and meaning
Definition of booking the basis: A method of documenting a trade whereby the buyer and seller agree to determine a future cash price for the transaction.
- CFTC Glossary - CFTC
Booking the Basis: A forward pricing sales arrangement in which the cash price is determined either by the buyer or seller within a specified time. At that time, the ...
- Glossary - CenterPoint Energy
Booking the Basis: A forward pricing sale arrangement in which the cash price is determined by the buyer or seller within a specified time. British Thermal Unit ...
- Glossary - National Futures Association
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