Futures – At Portfolio Level

Short description

Portfolio management: Set up futures positions at an exchange and monitor for the overall portfolio your fees, margin deposits and 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 trader.
You act in the capacity of aggressor.

Objective

The aim of this simulation is learn about transaction fees (exchange fee and clearing fee), the temporarily allocation of cash collateral (initial margin and variation margin) and the financial performance (realised and unrealised profit or loss) at portfolio level.

Task

Your task is to follow the money, when transacting.
Look at the allocation of capital, as initial margin and variation margin.
Analyse the development of your overall transaction fees.
Track your realised and unrealised profit or loss (P/L).

Conclusions

At the end of the simulation, analyse your performance. See what you have done and when you have done this and whether it could have been optimised. This way, you learn and optimise your competences.
Check what differences can be detected when you compare the situation of having left no position and having left a position.

 

Our Labels

Entrima and Market Abuse Centre (MAC) are the two labels we operate to provide learning services for professionals in the commodity & energy markets.
 
 


Content & Context

Entrima’s mission is to transfer knowledge regarding the business, controls & operations of parties in (or relating to) the wholesale markets.

www.entrima.org


Conduct & Culture

MAC’s mission is to facilitate the prevention & detection of misconduct and to foster proper behaviour in organisations. This is achieved via training, periodic updates and increased awareness.

www.marketabusecentre.com