Provides the customer with floating market prices for the desired contract term. A third party determines the market price and is published in an industry-recognized format. Predetermined contract quantity is not necessary.
Index Pricing includes an option to convert to a Fixed Price contract.
Index Price contracts are typically used when the market is in equilibrium or overvalued and the customer anticipates stable or falling prices.Benefits
Monthly Variable Rate
This is a flexible plan that offers a market-based rate with no long-term commitment. When rates are low, this plan allows you to take advantage of lower market trends.This plan includes an option to convert to a fixed price contract.
Higher Risk due to market exposure - Hedge to Fixed Price Available