When do I need to use the TERM contract method?

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All the steps in creating physical trade is the same using SPOT (Contract Type), the only difference is deciding whether you want to add the trade as part of the TERM contract.

If you want the system to keep track of how much quantity has been traded and outstanding (especially when you have not received the subsequent contract yet and is unsure of the actual quantity and price etc) for that contract, then you select TERM. So if you allocate the trade to the term contract, the system will accumulate the quantity into the traded quantity and reduce outstanding quantity accordingly. The outstanding quantity determines the quantity that has not been fulfilled for the contract.

Note: You can choose not to use the TERM method, but you may not be able to know if the main contract has been fulfilled/completed and may need to manually calculate the total quantity to determine its fulfilment. 

Click here to learn how to create a physical trade and here on how to create a term contract.

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