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).

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 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.

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.

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.

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.

Details about the TBF Trade

Click the Apply button to add the trade. The trade will be created and displayed on screen.

To Be Fixed Trades Shown on Item Screen

When you are ready to fix the price for the physicals, select Hedge/Fx > Add a futures trade.

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.

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.

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.

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.

Price Details After Fixing

A description of each menu option is provided here.

View a list of the futures trades attached to this physical item.

Remove a futures trade from the position it currently occupies.

Force CATS to recalculate the price-fixings on this item. Use this if the prices have changed.

Roll a hedge trade forward to another position month.

Execute a Good-Til-Canceled (Open) trade, converting it into a hedge.

Create or review the price fixing letter.

Change the date/price/note on a futures trade. Choose the item from a list and pick Continue to change the details.

Select Trade to Edit from the Chooser

When you have finished making changes, select Apply to proceed and save changes.

Select an unattached hedge to apply to this contract item.

Disassociate a hedge from the current contract item.

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.

Select Trade to Delete

CATS will prompt you to confirm deletion of the trade and provide details of the trade.

Confirm Deletion of Trade

Select Yes to continue with deleting the trade of No to cancel.

To create or review a price-fixing letter, go to the contract item and select “Hedge/Fx > Prepare/Review price fixing letter”

CATS displays a dialog reflecting the current price fixing status of the contract item. You can specify whether the PF letter is Fully or Partially fixed, set the number of bags. Click “Apply” (F2) to create the letter.

CATS will generate the price fixing letter. The language on the letter is automatically generated by CATS to match the information on the contract item.

Price Fixing Letter Menu ● Edit edit the language of the letter ● Prn print the price fixing letter ● Addr select a different address from the Name & Address file ● Review view a list of all the price fixing letters for this item ● Add add another price fixing letter ● Del delete the current price fixing letter