=====Price-fixing and Hedging from the Contract Item=====

{{entry>0;To Be Fixed Trades;-}}{{entry>0;Price Fixing Letter;-}}
CATS uses a system of several different types of trades. You can manage all the operations for hedging and futures against a physical trade using the **Hedge/Fx** menu. Physical trades are classified as either To-Be-Fixed (also called Unpriced or Fixing Required) or Fixed (also called Priced or Fixing Actual trades). 

The currently open trades for an item are displayed next to the differential information.
[{{:cats:procedures:futures:pricefixing_nolots.png|Trades Area on the Item Screen}}]

====To-Be-Fixed Trades====
Fixing required trades, when present on a contract, indicate the number of lots being traded that have no fixed price. This is useful on reports to show which items need to be fixed and for projecting profit. 

If you are adding an item on a contract, and have entered the price as a differential without entering a fixed price, CATS will prompt you to create a price-fixing for the number of lots calculated on the contract. 
[{{:cats:procedures:contract:contractentry_createpricefixingyesno.png|Create To-Be-Fixed Trades for this Item}}]

Select **Yes** to have CATS create the fixing required trade for the entire item. Select **No** to cancel adding the trade. 

Alternatively, you can add fixing required trades to any item without a fixed price by selecting **Hedge/Fx** from the item screen menu, then picking **Add a Futures Trade**.
[{{:cats:procedures:futures:6150addafuturestrademenu.png|Add a Futures Trade}}]

From the drop-down boxes, select **Fixing Required** and enter the number of lots for the trade. CATS will calculate the number of lots based on the default lot size for the exchange code on the item. 
[{{:cats:procedures:futures:pricefixing_addrequiredlotno.png|Add a Fixing Required Trade}}]
Select **Save** to proceed. 

CATS will ask you to enter details about this trade. You can enter an optional **Memo No** and a **Note**. 
[{{:cats:procedures:futures:pricefixing_requireddetails.png|Details about the TBF Trade}}]

Click the **Apply** button to add the trade. The trade will be created and displayed on screen.
[{{:cats:procedures:contract:contractentry_tbftrades.png|To Be Fixed Trades Shown on Item Screen}}]

If you attempt to create a fixing required trade when the contract has a fixed price, you will see the following message.
[{{:cats:procedures:futures:pricefixing_alreadyhasapricewarning.png|Contract Has a Price}}]

You will need to zero out the price before attempting to add a fixing trade to this item. 

====Fixing Actual Trades====
When you are ready to fix the price for the physicals, select **Hedge/Fx > Add a futures trade.**
[{{:cats:procedures:futures:6150addafuturestrademenu.png|Add a Futures Trade}}]

CATS recognizes that there are 4 lots to-be-fixed for this physical and so has those values prepared. The other options are Fixing Required (which CATS created for us automatically), Commodity Hedge, Currency Hedge, and GTC (Open) Trade.
[{{:cats:procedures:futures:pricefixing_tradetypesmenu.png|Types of Trades Available}}]

You can enter the trade type as **Long** (purchase) or **Short** (sale). Enter the number of units to trade and select the appropriate brokerage. Click on **Save** or push the [F2] button on your keyboard to continue.
[{{:cats:procedures:futures:pricefixing_addfixinglotno.png|Add a Fixing Actual Trade}}]
 
CATS will ask you to enter the details about this trade. Enter the trade price. If necessary you can also modify the date, memo, and a note. Click on **Apply** (F2) to create the trade.
[{{:cats:procedures:futures:140enter_trade_date_and_price.png|Enter Details for this Fixing Actual Trade}}]

The item now shows the new fixed price (as calculated from the differential and the fixation price). We can see the fixation date and the price at which the trade was fixed. 
[{{:cats:procedures:futures:pricefixing_pricefixeddatelotsfixed.png|Price Details After Fixing}}] 

You can also fix some lots and leave other lots unfixed. Here, we see an item screen with two lots unfixed and two lots fixed. The average price calculated is shown in the top right. 
[{{:cats:procedures:futures:pricefixing_partiallyfixed.png|Partially Fixed Item Screen}}]

====Menu Options====
A description of each menu option is provided here.

===Review futures trades===
View a list of the futures trades attached to this physical item, either open trades or liquidated trades. For our example, the only **Open** trades are the fixing actual trades we created. 
[{{:cats:procedures:futures:pricefixing_reviewopentrades.png|Review List of Open Trades}}]

Under the **Liquidated** futures trades options we can see the to-be-fixed trades that we created previously. Once the price has been fixed on this item, these TBF trades are moved to the liquidated area. 
[{{:cats:procedures:futures:pricefixing_liquidatelist.png|Review Liquidated Trades List}}]

Select either **Continue** or **Cancel** to return to the item screen.

===Liquidate a futures trade===
Remove a futures trade from the position it currently occupies. To see the full procedure on liquidating trades, review the tutorial on [[cats:procedures:futures:addliquidatemovefutures|Working With Futures Trades in CATS]].

===Recalculate price-fixing trades===
Force CATS to recalculate the price-fixings on this item. Use this if the prices have changed. CATS will ask you to confirm changing the price.
[{{:cats:procedures:futures:pricefixing_liquidatechangesprice.png|Confirm Price Change to Item}}]

===Move a trade forward===
Roll a hedge trade forward to another position month.  To see the full procedure on moving trades forward, review the tutorial on [[cats:procedures:futures:addliquidatemovefutures|Working With Futures Trades in CATS]].

===Execute trade===
Execute a Good-Til-Canceled (Open) trade, converting it into a hedge. For more information on Hedges, see the wiki procedure on To see the full procedure on liquidating trades, review the tutorial on [[cats:procedures:futures:addliquidatemovefutures|Working With Futures Trades in CATS]].

===Prepare/Review price fixing letter===
Create or review the price fixing letter. See the wiki on creating a [[cats:procedures:contract:pricefixingletter|Price Fixing Letter]].

===Edit a futures trade===
Change the date/price/note on a futures trade. Choose the item from a list and pick **Continue** to change the details.
[{{:cats:procedures:futures:pricefixing_editfromlist.png|Select Trade to Edit from the Chooser}}]

When you have finished making changes, select **Apply** to proceed and save changes. You can change the date, price, or note. 
[{{:cats:procedures:futures:pricefixing_addactualdetails.png|Change Date, Price, or Note on a Futures Trade}}]

===Attach Physical to Futures Trade===
Select an unattached hedge to apply to this contract item. This option is used to take a hedge entered under the Trade Data Entry/Review file area and attach it to a physical contract. 

You will be asked to confirm attaching. Select **Yes** to continue.
[{{:cats:procedures:futures:pricefixing_attachhedgetophysicalyesno.png|Confirm Attaching a Hedge to this Item}}]

CATS will prompt you for a **Trade No** to look up the trade you want to attach.
[{{:cats:procedures:futures:pricefixing_attachhedgeentertradeno.png|Attach by Trade No}}]

If you do not know the number, a chooser will pop up with all unattached hedges. Select one from the list and pick **Continue** to proceed. 
[{{:cats:procedures:futures:pricefixing_attachhedgeselectfromlist.png|Choose a Hedge to Attach from the List}}]

===Unattach Physical from Futures Trade===
Disassociate a hedge from the current contract item. This will simply return the hedge to the list of unattached trades and remove it from the item. 
Select the hedge from the chooser list and pick **Continue**. 
[{{:cats:procedures:futures:pricefixing_unattachhedgefromphysicallist.png|Select Hedge to Unattach}}]

A summary of the procedure will be displayed. Select **Apply** to continue unattaching the trade. 
[{{:cats:procedures:futures:pricefixing_unattachhedgeconfirmdetails.png|Unattach Procedure Confirmation}}]

The hedge will be removed from the item screen. 

===Delete a futures trade===
Remove a trade from the system completely. 
If you select this menu option, you will be asked to choose from a list of trades.

Select the trade and pick **Continue** to proceed.
[{{:cats:procedures:futures:pricefixing_deleteselect.png|Select Trade to Delete}}]

CATS will prompt you to confirm deletion of the trade and provide details of the trade. 
[{{:cats:procedures:futures:pricefixing_deleteconfirm.png|Confirm Deletion of Trade}}]

Select **Yes** to continue with deleting the trade or **No** to cancel. 

{{tag>"to be fixed trades" "fixing actual trades" "liquidate a future trade"}}