Market price contract

Market price contract
  A contract in which the price of uranium is not specifically determined at the time the contract is signed but is based instead on the prevailing market price at the time of delivery. A market price contract may include a floorprice, that is, a lower limit on the eventual settled price. The floorprice and the method of price escalation generally are determined when the contract is signed. The contract may also include a price ceiling or a discount from the agreed-upon market price reference.
  U.S. Dept. of Energy, Energy Information Administration's Energy Glossary

Energy terms . 2014.


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