3.4.1 Define the Fair Price Revaluation Methods

Revaluation is used to revalue all active trade deals based on the revaluation frequency parameters specified through the Preferences screen while defining products. Since the market rates are constantly in a state of flux, revalue the worth of all active trade deals periodically.

In Oracle Banking Treasury, revalue the worth of contracts by using either one of the following methods. They are as follows:

• Maintaining Contract Fair Prices whereby you have to indicate the fair price of individual contracts, is used for revaluation.
• Maintain branch level forward interest rates through Maintaining Branch Interest Rates, determines the fair price used for revaluation. Fair price is calculated based on the interest rates and will apply to In or Out leg based on the contract.
• Maintaining Contract Interest Rates to maintain contract specific forward interest rates determines the fair price used for revaluation. Fair price is calculated based on the interest rates apply to In or Out leg based on the contract.

Your preference for revaluing contracts linked to the particular product will default to all the contacts linked to that product. However, you can change this preference at the time of processing the contract.

Each of these revaluation methods have been explained in detail in the following sections.