Backpricing
A pricing method used in specific futures contracts whereby the price of the commodity to be delivered is priced by the purchaser at some future date after entering into the position.
Investopedia Commentary
The price at which the purchaser can set the deliverable commodity must be relative to any monthly or periodic price found in the futures market for that particular actual.
Related Links
Futures Fundamentals
See also: Actual, Assignable Contract, Back Months, Certificated Stock, Current Delivery, Delivery, Delivery Instrument, Differential
Also spelled: Back-pricing, Back Pricing