What is ‘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.
Explaining ‘Backpricing’
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.
Further Reading
- System for developing real time economic incentives to encourage efficient use of the resources of a regulated electric utility – patents.google.com [PDF]
- The Oil Market and the Financial Crisis – link.springer.com [PDF]
- The Economic Implications of Natural Gas Pricing Adjustment in Indonesia. – search.ebscohost.com [PDF]
- Dramatic changes in US project finance – search.proquest.com [PDF]
- Dynamic product acquisition in closed loop supply chains – www.tandfonline.com [PDF]
- Mobility in Economics and Intercultural Economics – books.google.com [PDF]
- If You Could Freeze-Frame the Information Flow, What Would You Do? – www.tandfonline.com [PDF]
- Optimizing the Marketing Strategies of Qantas Airways and Thai Airways – journals.tplondon.com [PDF]