What pricing models can I use in my valuation?

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You can value one or more transaction portfolios or an arbitrary set of instrument holdings.

The valuation process is governed by a recipe. For each type of instrument you wish to value, LUSID automatically provides a default pricing model:

Instrument type	Default pricing model
`Bond`, `FxForward`	`ConstantTimeValueOfMoney`
All other types	`SimpleStatic`

To switch a particular instrument type to a more suitable or sophisticated model, specify a vendor model rule in your recipe. See how to construct vendor model rules.

The complete set of built-in pricing models is listed here. Not all models are valid for every instrument type:

Instrument type	Valid pricing model(s)
`Equity`	`SimpleStatic`
`Bond`, `ComplexBond`	`SimpleStatic` `Discounting` `ConstantTimeValueOfMoney`
`FxForward`	`SimpleStatic Discounting ConstantTimeValueOfMoney ForwardWithPoints ForwardWithPointsUndiscounted ForwardSpecifiedRate ForwardSpecifiedRateUndiscounted ForwardFromCurve ForwardFromCurveUndiscounted`
`EquityOption`	`SimpleStatic Discounting BlackScholes ConstantTimeValueOfMoney Bachelier`
`FxOption` Note model availability may vary with different pay off and exercise types.	`SimpleStatic Discounting BlackScholes BlackScholesDigital ConstantTimeValueOfMoney Bachelier BjerksundStensland1993`
`Future`	`SimpleStatic` `ConstantTimeValueOfMoney`
`ContractForDifference`	`SimpleStatic` `Discounting` `ConstantTimeValueOfMoney`
`Repo`	`SimpleStatic` `Discounting` `ConstantTimeValueOfMoney`
`EquitySwap`	`SimpleStatic Discounting ConstantTimeValueOfMoney`
`InterestRateSwap`	`SimpleStatic` `Discounting` `ConstantTimeValueOfMoney`
`InterestRateSwaption`	`SimpleStatic Discounting BlackScholes ConstantTimeValueOfMoney Bachelier`
`TermDeposit`	`SimpleStatic Discounting ConstantTimeValueOfMoney`
`FundingLeg`	`SimpleStatic Discounting ConstantTimeValueOfMoney`
`CreditDefaultSwap`	`SimpleStatic Discounting ConstantTimeValueOfMoney`

Keywords: valuation, recipe, pricing model