Formula Pricing Guide

Owned by IT Support
Last updated: Aug 25, 2022
6 min read

1. Please click on Trade>Physical Trade to access the physical trade details page, and click on Next to access the Benchmark Pricing page. Please select FORMULA from the dropdown list to use formula pricing. You may repeat the same steps to set up formula pricing for MTM Pricing as well.

 

2. The Quantity will be auto filled based on the quantity you have input in the previous page.

 

3. Please click on the blue “+” button to add new item for each section. The variables a, b, c etc will be generated accordingly to assist you with writing the formulas for calculations.

Please note that “e” and “pi” are special numbers so you are advised not to allow them to add, subtract and multiply as part of your formula equation, division is fine. If the case is necessary, you may add space after “e” and “pi”.

For example: e+300 will not be valid, so you can change to e + 300

 

Please create new row to add new products (eg SGX TSI Iron Ore CFR China (62% Fe Fines) Index Futures) and the Formula CCY will be auto filled based on the products, and input the Month/Year and Value Date according to the product’s characteristics.

  • Futures product: Input Month/Year

  • Forward product: Input Value Date

 

4. If you have input specifications data in Iron Ore Product Group - Specifications , you may choose the variables (WMT, DMT, FE %) from the drop down list:

Once selected, Value (%) will be automatically filled based on your data input in Iron Ore Product Group - Specifications . If Value (%) is empty, it means that your specifications data have not been input yet, so you may return to previous page and click on Edit button under the Specifications section to access the specifications page to fill in the data. If you are unable to click on the Edit button, you may have to save the page first for the system to auto-generate the trade ID, and you will then be able to click on the Edit button.

 

 

Please note that if any value in WMT, DMT, FE % and MOIS% is changed in math formula, system will perform P/L recalculation.

Check:

  1. Are there spec variables in math formula?

  2. Are those spec variables in the math formula value changed?

if both check yes, then MAF will recalculate P/L. If no formula pricing mode or no math formula, check 1 and 2 are not valid, then wont recalculate P/L

 

5. If you have Premium or Discount data, you may input them under the Others section.

 

6. If you have sub-variable such as DMTU, you may input them under the Sub-Variable section. This sub-variable’s value can be used to calculate formula using above variables according to your requirements, and its variable can be used as part of the final formula calculation in point 7 below.

 

7. Please fill in the Formula Name and Formula details accordingly. The Formula Name is tied to the Formula so when you input the Formula Name and Formula and save, the system will save it into the database. So when you select the Formula Name from the Formula Template drop down list at the top of the page, all the variables and data of the Formula Name will be auto-filled accordingly, reducing the need for you to manually input the formula for each trade.

Use the assigned variables (a, b, c, etc.) together with operators (+, -, *, /, ^, etc.), parentheses, and constants (2, 2.5, 6/3, etc.) to create your own formula (e.g. 1/a, a-b, (a+b)/2, (a/(a+b+c))*100).

Updating of existing formula name’s formula:

  • Formula name will save latest trade ID’s formula, regardless of whether you change old trade formula it will always use latest trade ID’s formula

  • For example, trade ID 100 and trade 101 use the same formula name A

    so if you edit trade ID 100’s formula, the formula will apply to trade ID 100 only, if choose formula name A, it will use the latest trade ID 101’s formula

    so if you edit trade ID 101’s formula, the next time you use formula name A, it will use the latest formula aka trade ID 101’s formula

When any variable is modified and saved, the system will automatically recalculate the P/L details.

Please refer to the following Percentage % Calculation Logic to learn how to enter the calculation formula for %.

 

8. Please click on Next to access the MTM Pricing page, which you may use the above same steps if formula pricing is required, and click on Submit to save the details.

 

9. Once saved successfully, the Formula Name and Formula will be saved as a template, which can be selected from the Formula Template drop down list. Once you select from the list, the respective variables and formula will be auto-filled accordingly, reducing the need for you to manually input the formula for each trade.

 

10. If you want to edit the Formula Name, you may return to the same page and change the name before saving, and the template name in the Formula Template dropdown list will be adjusted accordingly based on the last saved name.

Please note that the system will not help to check for duplicated Formula Name, if the Formula Name is duplicated (used multiple times), the system will only return the last saved formula tied to the last saved Formula Name.

 

 

11. The system will automatically calculate your positions, price, and size etc according to your formula pricing set up. You may proceed to Dashboard>Individual Dashboard and create the Portfolio P/L Details app to verify if the formula and calculated P/L are accurate.

 

 

Please note that:

  • Invalid formula will cause Brought Price or Sold Price to be closed and become 0

  • Actual Qty will be linked to various models/reports app in Dashboard

  • Premium and Discount under Others section will allow unlimited decimal point

  • Exp/Inc table will show Unit Price according to product price or actual price, unless Specifications have no value or formula is incorrect

  • If Actual Qty has been input, when return to edit physical trade page, formula details are editable

 

Percentage % Calculation Logic:

If the FE % and MOIS % values in the Specifications section show, for example, 62%, it is actually calculated using 0.62 in the system. So the display is 62 but 0.62 will be used for calculations. So you need to consider adding *100 to express "multiplied by" or /100 to express "divide by" to match the corresponding calculations when entering in the final calculation formula.

  • Specifications section: FE% and MOIS% are displayed as eg 62%, but 0.62 will be used to do calculations.

  • Sub-Variable section: If FE% or MOIS% is needed, you may input the variable eg a or b accordingly, but if additional related % value is required, you may input in % form eg 65 in the DMTU value. Display is 65% but calculated amount will be using 0.65.

  • Formula section: If FE% and MOIS% eg 62% is needed, you may input the variable eg a or b accordingly, and multiply by 100 (input *100 after the variable) so that the value becomes 0.62*100 to get 62, in order to standardise the digit format in the calculation formula. You may also choose to input the percentage eg 62% instead of the variable by entering 62 in the calculation formula.