How do Price Formulas based on NYMEX prices work?

The Create New Future Index-based Price Formula screen lets you set up a price based on a NYMEX futures index.

You begin by selecting the futures index you want for the base price. The base price will be based on the last settlement price for the nearby contract, which will be updated each day to reflect market changes. When the last settlement price updates, your futures index-based price will be updated too.

Next you select the supplier and product or group of products that you want tied to the NYMEX index. If you want, you can apply an adjustment as a dollar amount or percentage. The adjustment amount can either be an increase or a decrease. Finally, you will specify set the dates when the price will be in effect, and assign it to the terminals you want.