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.

• As with any other list, you can search, select, adjust, pin, filter, group, and sort columns, reset to the default view, save user views, and export.

• 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. 

Open

Open

As with any other details view, you can navigate to a different record by clicking its card or return to the list by clicking its Name.

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.