basis grade(redirected from Basis Grades)
The minimum acceptable quality of a commodity for delivery on a futures contract. The basis grade must be described in the contract, and can strongly affect the price. To use an extreme example (unlikely in real life), a futures contract for rotten corn would be worth less than one for high-quality corn. In both cases, however, the basis grade is described in the contract itself.
The specified grade for a commodity necessary for it to be acceptable for delivery on a futures contract.