Home >Trading & Risk > FFA/Option Trade
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On the FFA/Option Trade form, you can capture the basic information of an FFA or an option. The Veson IMOS Platform captures four types of options: Buy and Sell of Call and Put Options.
A CALL option gives the holder of the option the right to buy at the strike price.
A PUT option gives the holder of the option the right to sell at the strike price.
FFA contracts are valued against the quoted forward rates for the route underlying the trade. FFA Options are not being automatically valued against the underlying routes. Instead, you can create a Market for Freight Options in which the Option Symbols can be quoted. Each FFA Option contract will have a unique Option Symbol automatically generated. On the Market Data form, the quoted values of the trades can be recorded for each Option Symbol.
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The FFA/Option List includes all FFA/Option Trades that you have the right to view.
On the Trading menu 
, under Trades, next to FFA/Option, click List.
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You can select multiple Commodity/Options and confirm them at once by clicking the Confirm trade(s) link.
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Note: To edit FFA/Option Trades, you must have the Record Trades Module Right selected.
To view an existing FFA/Option Trade, on the FFA/Option List, click its row or Trade ID link.
To create a new FFA/Option Trade, do one of the following:
On the FFA/Option List, click +.
On the Trading menu
, under Trades, click FFA/Option.
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You can use tools on the toolbar to create, find, save, copy, or delete records.
To copy an FFA, click
. Enter the number of copies and then click Create. Edit line items for the copies as needed and then click OK.
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Enter contract details.
The grid on the bottom of the form populates with the Periods, the Market Rates, the Date that the Market Rate is from (Source), and the P&L (Exposure). Exposure TabWhen you first enter a trade, periods in the future appear on the Exposure tab.  Settlement TabAfter a particular period of the trade has matured and the settlement rate has become available, that period moves to the Settlement tab. The Trade must be refreshed for the periods to appear on the correct tab. To refresh, close the trade and reopen it.  These conditions both need to be fulfilled for this to happen:
Months TabMonthly information appears on the Months tab.  Linked Trades TabNote: Configuration flags CFGLinkPapertoPaper and and CFGLinkedTradeTypes must be enabled. On the Linked Trades tab of each paper trade form, he the Linked Trades grid enables you to link this trade to other paper and physical trades.  The grid at the top of the tab enables you to capture any paper trades that the contract is using to hedge. TheThe Contracts gridgrid enables you to capture any trades that are using this contract as a hedge. Example: If you have an FFA trade, and there is bunker exposure associated with the calculation that you would want to hedge, then you would use the top grid and select a Bunker Swap. If you have a Cargo contract that has freight exposure and you want to hedge to an FFA, then this Cargo contract would show up in the Contracts grid of that FFA. On either grid, you can:
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Bunker Exposure Tab
As a trader booking FFAs on either $/ton or World Scale routes, you can manage exposure to the bunkers that are taken into account by these routes. The Bunker Exposure tab enables you to capture bunker tons, bunker contract rate, and bunker market symbol, so that proper hedging can be completed against the contracts. This bunker exposure appears on the Trading P&L Summary and Trade Details list.
To enable the Bunker Exposure tab, select an Index/Route where the Trade Route Unit is $/ton or World Scale.
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For each row in this grid, the Qty/Month field represents the tonnage of bunker exposure for the specified fuel type per month of the contract. For example, if the Qty/Month is 100.00, the total exposure for a 12-month contract would be 1,200.00.
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