Pair-Off Fee Example - MPF Xtra

Pair-off

If the price is better, a fee is charged (rate down)

  • Take down a DC for $100,000 at a price of 1.00 premium
  • Deliver $85,000
  • The tolerance on this Xtra DC is between $90,000 and $110,000
  • This delivery is out of tolerance by $15,000
  • The fee will be based on the full amount the delivery commitment is under delivered - in this example, it would be $15,000.00
  • Today's price is 1.50 premium (based on days remaining in the delivery commitment)
  • Fee will be charged - based on the difference between the DC price and today's price because today's price is better
  • $15,000.00 x .0050 = $75.00

Had the price gone down by the same .50, MPF would credit your DDA $75.00