# Pricing Policy

#### **Table of Contents**

- [Description](#bkmrk-description)
- [Examples](#bkmrk-examples)
- [Cookbook](#bkmrk-cookbook)
- [F.A.Q.](#bkmrk-api-documentation)
- [API Documentation](#bkmrk-api-documentation)

#### **Description**

##### *Financial meaning*

**Pricing Policy** defines the methodology or rule set used to determine financial values, such as Fx Rates or instrument prices on a specific date. It ensures consistent and transparent valuation practices across portfolios and transactions.

##### *Platform abstraction*

In the **Finmars platform**, a **Pricing Policy** is a system-defined entity that determines how [prices ](https://docs.finmars.com/books/entities/page/price "Price")and [FX rates ](https://docs.finmars.com/books/entities/page/fx-rate-currency-history "FX Rate (Currency History)")are sourced, calculated, and maintained. It directly influences data handling in valuations, [reporting](https://docs.finmars.com/books/reports "Reports"), and [reconciliation](https://docs.finmars.com/books/reports/chapter/reconciliation "Reconciliation").

Pricing Policy types:

1. **Master –** Combines all other Pricing Policies in the Workspace. The compilation follows a configured order, and the Master Pricing Policy is mandatory for use in reports to ensure consistent aggregation logic.
2. **Rolled Master –** Designed to include rolled prices and FX rates. The rolling method is defined by a dedicated rolling pricing module, allowing dynamic calculation based on available data.
3. **Standard –** Applied when prices or rates are manually created or imported. It provides a straightforward structure for static or user-defined pricing.

**Pricing Policy also is used in:**

- valuation workflows, where it governs how instrument prices and [FX rates ](https://docs.finmars.com/books/entities/page/fx-rate-currency-history-eN8 "FX Rate (Currency History)")are sourced and applied based on policy type.
- [report ](https://docs.finmars.com/books/reports "Reports")generation, with the **Master** Pricing Policy ensuring consistent aggregation across [portfolios ](https://docs.finmars.com/books/entities/page/portfolio "Portfolio")and [transactions](https://docs.finmars.com/books/entities/page/transactions "Transactions").
- data imports and manual adjustments, where the **Standard** policy is used to apply static or user-defined [prices ](https://docs.finmars.com/books/entities/page/price "Price")and [FX rates](https://docs.finmars.com/books/entities/page/fx-rate-currency-history-eN8 "FX Rate (Currency History)").
- rolling calculations, where the **Rolled Master** policy enables dynamic valuation using time-series data through a rolling pricing module.
- [reconciliation ](https://docs.finmars.com/books/reports/chapter/reconciliation "Reconciliation")processes, supporting comparison of expected vs. actual [prices](https://docs.finmars.com/books/entities/page/price "Price") and rates.
- workspace configuration, where different Pricing Policies are assigned to ensure each [portfolio](https://docs.finmars.com/books/entities/page/portfolio-type "Portfolio Type") or [transaction type](https://docs.finmars.com/books/entities/page/transaction-type "Transaction Type") follows the appropriate pricing logic.

#### **Examples**

<table border="1" id="bkmrk-name-unique-code-not" style="border-collapse: collapse; width: 100%;"><colgroup><col style="width: 33.3333%;"></col><col style="width: 33.3333%;"></col><col style="width: 33.3333%;"></col></colgroup><tbody><tr><td>**Name**</td><td>**Unique Code**</td><td>**Notes**</td></tr><tr><td>Standard</td><td>com.finmars.standard-pricing:standard</td><td>Pricing Policy for Manual Import and Manually Created.</td></tr></tbody></table>

1. `<strong data-end="135" data-start="127">Name</strong>`: full descriptive name of the pricing policy.
2. `<strong data-end="329" data-start="314">Unique Code</strong>`: system-wide unique identifier for the pricing policy ( (e.g. com.finmars.standard-pricing:standard ).
3. `<strong data-end="493" data-start="484">Notes</strong>`: optional free-text field for internal documentation, detailing assumptions, special rules, or customizations related to the pricing logic

#### **Cookbook**

##### *CRUD* 

Operations within platform.

##### *Use Cases*

What for it's used.

#### **F.A.Q.**

Frequently asked questions.

#### **API documentation**

Link to API documentation.