The abbreviation of FREE ON BOARD, which is the FOB price, or literally translated as the shipboard transaction price.

The corresponding is the abbreviation of CIF, COST, INSURANCE, FREIGHT, which is the landed price, or literally translated as FOB price + premium + freight

Basic difference: a certain price at a specific location The difference between the spot price of a commodity and the price of a specific futures contract for the same commodity.

FOB basis quotation is the price difference between the spot price of a certain commodity (based on FOB price) and the price of a specific futures contract of that commodity