Training: Financial Performance (P/L) (information)

Analyse your financial performance, in particular your realised and/or unrealised profit or loss.
This simulation mimics the fundamentals of the trading environment and market activity. Focus is only on relevant aspects so that you cannot be distracted by (currently) irrelevant aspects. The modular setup of this simulation allows therefore for gradually grasping one concept or process after another, making it very suitable for non-traders. Actually, it is suitable for all professionals with a role in (or relating to) the wholesale commodity or energy markets. It is very suitable for non-traders as terminology is covered on the go, thereby intuitively embedding concepts and processes.

Capacity:

You act in the role of a market participant.
You act in the capacity of aggressor.

Task

Your task is to analyse your financial result: Realised and/or Unrealised Profit/Loss.

Objective

The aim of this simulation is to:

Analyse the Unrealised Result of an open position (“P/L-U”).
Therefore, open a position (long or short), initially of one unit only. Then, watch the market price to develop and see what this does to your unrealised result.

Analyse the Realised Result of a closed position (“P/L-R”).
Therefore, close the position that was initially opened. Upon closing the position, your unrealised result should now be zero, while a realised result has appeared.
Now start all over again, but this time you take a position of more than one unit (for instance three units). Again, analyse your unrealised result; it changes dynamically on the basis of market dynamics.
At a certain point, close your position and watch your realised result (your unrealised result should now be zero).