Pair-Off Fee Examples

Example 1: Pair-off At Expiration

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

• Take down a Delivery Commitment (DC) for $100,000 at a price of .50 premium
• Deliver $90,000
• The tolerance on this DC is between $105,000 and $95,000
• This delivery is out of tolerance by $5,000
• Today’s price is .75 premium (based on days remaining in the DC)
• Fee will be charged – based on the difference between the DC price and the current price because the current price is better
• $5,000.00 X  .0025 = $12.50