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booking the basis

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Financial Dictionary

Booking the Basis

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. Also known as "deferred pricing."

Investopedia Commentary

Once the basis of a futures contract is booked, it is applied to the current futures price and is maintained for the duration of the contract.

Related Links

Futures Fundamentals
Interpreting Volume for the Futures Market
Getting Started in Foreign Exchange Futures

See also: Basis, Cash Commodity, Cash Price, Commodity, Forward Contract, Futures Contract

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