Home > Trading & Risk > Commodity/Option Trade

Commodity/Option Trades are nonfreight derivatives that are traded as hedges to your company's overall exposure. These trades (for example, crude oil, iron ore, and coal) are meant to hedge risk to overall market fluctuations that may impact your commodity desk and in turn, impact the freight book. Commodity/Option Trades can be represented as buys/sells with a simple Quantity and Price. They reference market data for P&L and settlement in the exact same way as FFAs.

Commodity contracts are valued against the quoted forward rates for the route underlying the trade. Commodity Options are not being automatically valued against the underlying routes. Instead, you can create a Market for Commodity Options in which the Option Symbols can be quoted. Each Commodity 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. Commodity - Option trades must have the associated configuration flag CFGCommodityMarket established with the correct commodity market. With this flag set the system limits your paper trading/settlement to one market. Physical contracts may still be set to multiple markets.

Commodity/Option List

The Commodity/Option List includes all Commodity/Option Trades that you have the right to view.

On the Trading menu , under Trades, next to Commodity/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.

Commodity/Option Trade

Note: To edit Commodity/Option Trades, you must have the Record Trades Module Right selected.

To view an existing Commodity/Option Trade, on the Commodity/Option List, click its row or Trade ID link.

To create a new Commodity/Option Trade, do one of the following

On the Commodity/Option List, click +.
On the Trading menu , under Trades, click Commodity/Option.

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You can use tools on the toolbar to create, find, save, copy, or delete records.

To copy a Commodity, click . Enter the number of copies and then click Create. Edit line items for the copies as needed and then click OK.

The Commodity/Option Trade form is the same as an FFA/Option Trade, except the Index is always Commodity Symbol and, instead of a Route, you select the Symbol.

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Related Configuration Flags

Name/Flag	Description
Paper Trade Periods CFGPaperTradePeriods	When enabled, paper trades can be created for multiple non-consecutive periods with differing quantities in each period.
FFA Default Counterparty CFGFfaDefaultCounterparty	Defaults the Counterparty field when a value is entered in the Clearing House field.
Commodity Market CFGCommodityMarket	Selects the default market used for pricing of commodities.
Enable Commodity UOM CFGEnableCommodityUOM	When enabled, Type T units are available for Commodity trades, as defined on Units of Measure in the Data Center.
Enable Calculated Routes in Paper Trades CFGEnableCalculatedRoutesInPaperTrades	Enables the selection of calculated routes and symbols for paper trades.
Link Paper to Paper CFGLinkPapertoPaper	When enabled, the Linked Trades grid will be visible in the Paper Trade form and users are able to link two paper trades contracts together.
Linked Trade Types CFGLinkedTradeTypes	Specifies the type(s) of paper trade that can be linked on physical trades. Possible values are FFA, Bunker Swap, CALL Option, and PUT Option. Types should be comma separated.

VIP - Commodity/Option Trade

Commodity/Option List

Commodity/Option Trade