TranexioAI-native trade platform
简EN繁
Sign inBook a demo
Pricing and derivatives

Price fixing and price management

Price fixing and price management in Tranexio is the CTRM pricing capability for commodity trading. Price fixing, average pricing, formula pricing and other methods converge on the pricing order; the result carries through orders, settlement and invoices, and each fixing updates exposure and produces a hedge recommendation.

Key points

  • Multiple pricing methods

    Fixed price, price fixing, average price, trade at settlement (TAS) and formula pricing share one pricing model, and partial and multiple fixings can all be expressed.

  • One source for the pricing method

    The pricing method on the order carries through to pricing notices, settlement statements and invoices, so no step calculates its own price.

  • Pricing markets as master data

    Futures exchanges and physical price reporting agencies are maintained as pricing markets, and market prices are versioned, so you can trace exactly which price each fixing used.

  • Daily pricing exposure report

    Quantities in force but not yet priced form the pricing exposure, summarised daily by commodity, contract and trader.

  • Pricing matched to shipments

    Priced quantities are matched line by line to shipped quantities, so shipped-but-unpriced and priced-but-unshipped volumes are clear at a glance.

The problem

Commodity contract prices are often not fixed at signature but “fixed” progressively against the futures screen over a period. Common difficulties:

  • pricing instructions are given over WeChat and the phone, records are scattered and do not tie up afterwards;
  • average prices and formula prices are calculated in Excel, with no clear record of pricing dates or price versions;
  • priced and unpriced quantities are not totalled in real time, so exposure lags and hedging falls behind;
  • pricing, shipments and settlement are kept in three separate ledgers, and final settlement needs repeated checking.

How Tranexio handles it

  1. Pricing terms: contracts and orders select a pricing method; price-fixing contracts specify the pricing market, pricing period, premium or discount and who fixes (buyer, seller or by agreement).
  2. Market data: a single market data store maintains exchange and physical price quotations, price versions and trading calendars; external market data sources come in through the integration hub.
  3. Fixing: pricing instructions are entered in the pricing terminal, the system takes the price as agreed and generates a price confirmation; TAS trades at the settlement price of the agreed day.
  4. Averages and formulas: the average price calculation takes daily prices over the period and averages them; formula pricing supports quality adjustments and valuation, with a version chain from provisional to final price.
  5. Exposure and linkage: once a fixing takes effect, pricing exposure updates automatically and a hedging recommendation is produced, feeding the hedging process.
  6. Settlement: settle first on the provisional price, then run final pricing settlement and true-up once the final price is set.

Key controls

Control How it works
Pricing authority Pricing instructions can be given only by authorised staff within the pricing period
Price trail Every fixing records the pricing market, pricing date and price version
Quantity control Cumulative priced quantity may not exceed the contract quantity
Visible exposure Unpriced quantities are summarised daily as pricing exposure
Consistent prices Settlement and invoice prices come from the pricing order and cannot be entered by hand

Frequently asked questions

Can we fix the price in several instalments?

Yes. A contract can be priced in several fixings, each producing its own pricing record and price confirmation. The system accumulates the priced quantity, prevents it from exceeding the contract quantity and counts the remainder as pricing exposure.

How is the average price calculated?

The average price calculation takes daily prices from the pricing market and period agreed in the contract, then averages them as agreed. The version and date of every price used are recorded, so buyer and seller can trace each day when checking.

Will the system prompt us to hedge after a fixing?

Yes. Once a fixing takes effect, the system updates pricing exposure and makes a hedge recommendation based on the hedging strategy. When the trader confirms, a hedge instruction is created and moves into futures order entry and hedge relationship management – no more phone calls and spreadsheets between fixing and hedging.

What happens if we settle on a provisional price and the final price comes later?

Provisional-price settlement is supported. Once the final price is set, a final pricing settlement calculates the difference and generates the top-up or refund and the invoice adjustment. The settlement chain is fully logged, and both parties can check line by line against the pricing records.

Related

See how Tranexio fits your trade operations

Tell us how you trade and what systems you run today — a product specialist will walk you through your own scenarios.

Book a demo →

Updated 2026-10-06