Handling of Average Trade (FCStone & Sucden)

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Update:

Average trade for FCStone will be treated as a normal trade for uploading into the system.

Average trade for Sucden will be ignored and not uploaded into the system.

The average trade is a spread trade between average contract (Jan-2020) and 08-Feb-2020 contract.

We will first upload the CSV file and the MAF system will split it into 2 outright trades from CSV file:

1. + 50 lots Jan-2020 ALUMINIUM AVERAGE contract @ 0

2. - 50 lots 08-Feb-2020 ALUMINIUM 3M @ 0

Note: Buy is positive, Sell is negative.

as highlighted in the screenshot:

Referring to the CSV file, the 2nd trade (+ 50 lots, 08-Feb-2020) will close point 2 above (- 50 lots, 08-Feb-2020 ALUMINIUM 3M @ 0)

as shown in the screenshot, the 2 highlighted trades will close off each other.

and the open position will be + 50 lots Jan 2020 ALUMINIUM AVERAGE contract @ 0 (3rd row).

On 01-Feb-2020, Sucden will provide a trade: - 50 lots AVERAGE, 08-Feb-2020 @ final average price and it will close with long open average position in the system.

So the final P/L sum will be:

1. LME Aluminium 3M 08-Feb-2020 P/L = (0-2000) * 50 * 25

2. LME Aluminium Average Jan-2020 P/L = (Final Average Price - 0) * 50 * 25

So Final P/L = (Final Average Price - 2000) * 50 * 25 which is the same as in the broker’s statement.