A table or book of tables showing the yields of bonds at different interest rates and maturities. For example, if one is considering the purchase of a bond, one can take the coupon rate and the maturity and compare them in the basis book to determine the yield. The basis book is good for approximating yields, but financial calculators tend to be more accurate, especially for more complex bonds.It is 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. 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. Also known as “deferred pricing.”Once the future date occurs, the price of the underlying asset is set and remains that way until the forward contract matures. Booking the basis should not be confused with a basis book.
Booking the basis is used to calculate what the price will be at some time in the future. First the parties agree upon the formula or basis. Then, at a later date, the price is found by applying the previously agreed upon basis to the current futures quotation.