---
title: "What pricing models can I use in my valuation?"
slug: "what-pricing-models-can-i-use-in-my-valuation"
updated: 2026-10-14T10:08:44Z
published: 2026-10-14T10:08:44Z
canonical: "support.lusid.com/what-pricing-models-can-i-use-in-my-valuation"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# What pricing models can I use in my valuation?

For each type of instrument you wish to value, LUSID provides a *default pricing model*. [See all pricing models](/v1/docs/understanding-lusid-s-pricing-models).

For instruments with a recommended pricing model different to the default, **we strongly recommend changing it**. [See how to do this](/v1/docs/changing-the-pricing-models-for-instrument-types-in-a-recipe).

| **Instrument type** | **Default pricing model** | Recommended pricing model |
| --- | --- | --- |
| `Bond`, `ComplexBond`, `InflationLinkedBond` | `ConstantTimeValueOfMoney` for `Bond`; `SimpleStatic` for `ComplexBond` and `InflationLinkedBond` | `BondLookupPricer` or `Discounting`, and other specialist pricing models are available. [More information](/v1/docs/modelling-fixed-rate-vanilla-bonds-in-lusid#valuing-your-position). |
| `FxForward` | `ConstantTimeValueOfMoney` | [Depends on market data availability](/v1/docs/modelling-fxforwards-in-lusid#valuing-your-position). Note the default model values both legs at the spot rate, so it ignores forward rates. |
| `Future` | `SimpleStatic` | `ConstantTimeValueOfMoney` |
| `CreditDefaultSwap`, `CdsIndex` | `SimpleStatic` | `CdsLookupPricer` |
| `EquityOption`, `FxOption` | `SimpleStatic` | - `ConstantTimeValueOfMoney` for a simple PV calculation. - Either `BlackScholes`, `Bachelier` or `BjerksundStensland1993` for a time-weighted calculation, depending on option. |
| `FlexibleRepo` | `SimpleStatic` | `FlexibleRepoSimplePricer` |
| [InterestRateSwap](/v1/docs/modelling-interest-rate-swaps-in-lusid#valuing-your-position) | `SimpleStatic` | `Discounting` |
| `BondForward` | `SimpleStatic` | `Discounting`, with [model options](/v1/docs/fine-tuning-pricing-models-with-model-options#bondforwardmodeloptions) to choose how the forward price is projected. |
| `FlexibleLoan`, `FlexibleDeposit` | None. `SimpleStatic` doesn't support these types, so valuation fails unless your recipe has a rule for them. | `FlexibleLoanPricer` |
| `FundingLeg` | `SimpleStatic` | `Discounting` or `ConstantTimeValueOfMoney`, with [model options](/v1/docs/fine-tuning-pricing-models-with-model-options#fundinglegmodeloptions) to choose whether to value future coupons. |
| All other types | `SimpleStatic` | `SimpleStatic` |

Note the following:

- You have the option to change the default pricing model for any type except `Equity`, where `SimpleStatic` is the only choice.
- You can [conditionally select different pricing models](/v1/docs/recipes-changing-the-default-pricing-models-for-instrument-types#selecting-different-pricing-models-for-the-same-instrument-type) for the same instrument type.
- The `SimpleStatic` default for all other types comes from the `modelSelection` pricing option in your recipe. If you change that option, the default for these types changes too.
- Several recommended models need [model options](/v1/docs/fine-tuning-pricing-models-with-model-options) to behave as you'd expect, for example to report interest rate risk for a bond valued by `BondLookupPricer`.

> **Note**: The pricing model you choose impacts the quantity and quality of market data required. [Find out more about this](/v1/docs/what-market-data-does-my-valuation-require).

The complete set of built-in pricing models is listed [here](https://www.lusid.com/docs/api/lusid/schemas/ModelSelection/). To help you discover what pricing models are valid for an instrument type, call the [GetExistingInstrumentModels](https://www.lusid.com/docs/api#operation/GetExistingInstrumentModels) API with the [LUID](/v1/docs/what-is-a-lusid-instrument-id-or-luid) of an instrument of that type, for example:

```json
curl -X GET "https://<your-domain>.lusid.com/api/api/instruments/LUID_00003D64/models?instrumentScope=default&recipeScope=default"
  -H "Authorization: Bearer <your-API-access-token>"
```

The response contains the currently-valid pricing models for (in this case) an equity option:

```json
{
  "instrumentId": "LUID_00003D64",
  "supportedModels": [
    "SimpleStatic",
    "Discounting",
    "BlackScholes",
    "ConstantTimeValueOfMoney",
    "Bachelier"
  ],
  ...
}
```

This tells you which models you can choose, but not which model options they read. A model can also still decline a particular instrument when you value it, for example `HullWhite1F` declines bonds whose structure it can't value. To see the market data a model needs for an instrument, call the [QueryInstrumentCapabilities](https://www.lusid.com/docs/api#operation/QueryInstrumentCapabilities) API with the `model` parameter.