Deferred pricing

A method of pricing where a producer sells his commodity now and buys a futures contract to benefit from an expected price increase. Although some people call this hedging, the producer is actually speculating that he can make more money by selling the cash commodity and buying a futures contract than by storing the commodity and selling it later. (If the commodity has been sold, what could he be hedging against?)

A cash forward contract that provides for determining price by formula at a later date. This also may be called "booking the basis," when the formula sets price relative to a futures price.