Price Basing

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Dictionary Says

Definition of 'Price Basing'

A method of pricing commercial commodity transactions that bases these prices on related futures contract prices. This method is used by commodity producers, processors, merchants and consumers.
Investopedia Says

Investopedia explains 'Price Basing'

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.
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'Price Basing'

  • Gauging Support And Resistance With Price By Volume

    http://www.investopedia.com/articles/trading/06/PBVChart.asp
    ... To determine when a stock is basing, simply follow these steps: ... Then, use the PBV
    histogram to see if these parallel lines are located near key price levels. ...

  • Investment Valuation Ratios: Price/Earnings Ratio | Investopedia

    http://www.investopedia.com/university/ratios/investment-valuation/ratio4.asp
    ... see as underappreciated and undervalued stocks, at a bargain price, which, over ... with
    this valuation indicator and investors should avoid basing an investment ...

  • Gauging Support And Resistance With Price By Volume

    http://www.investopedia.com/articles/trading/06/pbvchart.asp
    ... To determine when a stock is basing, simply follow these steps: ... Then, use the PBV
    histogram to see if these parallel lines are located near key price levels. ...

  • Value Investing: Managing The Risks In Value Investing ...

    http://www.investopedia.com/university/value-investing/value-investing6.asp
    ... a long-term outlook, you can sell your stocks only when their price exceeds their
    fair market value (and the price you paid for them). Basing Your Investment ...

  • Finding Market Movement With The ADX

    http://www.investopedia.com/articles/technical/02/041002.asp
    ... to a sideways or horizontal trading pattern, and the moving averages start to cluster
    around the price of the security. This signifies basing action within a ...

  • Derivatives 101

    http://www.investopedia.com/articles/optioninvestor/10/derivatives-101.asp
    ... the trade. Each derivative has an underlying asset for which it is basing
    its price, risk and basic term structure. The perceived ...

  • America's Loss Is The Currency Market's Gain

    http://www.investopedia.com/articles/forex/09/smithsonian-agreement-1971.asp
    ... use of trade credits. This equalization meant basing the price of a currency
    on its balance of payments. If balance of payments ...

  • Tales From The Trenches: Don't Count On Luck

    http://www.investopedia.com/articles/trading/07/sticktostrategy.asp
    ... in Figure 5, the price of $11.21 turned out to be the highest price (to the ... Basing
    a trading strategy on time-tested methods that have proven their worth over ...

  • Trader's Corner: Finding The Magic Mix Of Fundamentals And ...

    http://www.investopedia.com/articles/trading/04/090904.asp
    ... The company should demonstrate increasing volume as price moves out of a basing
    chart pattern such as a cup and handle, saucer bottom, or head and shoulders ...

  • Beware False Signals From The P/E Ratio

    http://www.investopedia.com/articles/fundamental-analysis/10/false-signals-pe-ratio.asp
    ... even when the P/E ratio is standardized for growth, you are basing your investment ...
    is to consider a company's enterprise value or EV in place of its Price or P ...

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