Page 14 - PRIAA Glossary

BASE-LOAD CONTRACT
A contract that specifies the minimum amount of power demand that will be constant and rateable. Other contracts are used to supplement the baseload amount and are sometimes referred to as peaking contracts that kick in during periods of peak demand.
BASIS (GROSS)
The difference between the relevant cash instrument price and the futures price. Often used in the context of hedging the cash instrument.
BASIS POINT
A unit of measure. One basis point is one hundredth of a percentage point.
BASIS RISK
The risk of loss arising from the price sensitivity of a hedging financial instrument not exactly matching the price sensitivity of the instrument being hedged.
BASIS SWAP
A floating vs. floating interest rate swap under which both leg payments are referenced to different floating rate indexes.
BASKET
A bespoke, synthetic portfolio of underlying assets whose components have been agreed for a specific over-the- counter (OTC) derivative by the parties to the transaction.
BASKET OPTION
An option that may be exercised based on the weighted average performance of several underlying instruments.
BRITISH COLUMBIA SECURITIES COMMISSION (BCSC)
The regulatory body that administers and enforces securities laws and regulations in British Columbia Canada and regulates the TSX Venture exchange.
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