how to read the futures & options statements.
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HOW TO READ FUTURES & OPTIONS TRADING STATEMENTS This information has been prepared to help you understand your Futures and Options Trading Statement (Tax Invoice). It should be read in conjunction with your trading statements. About your Trading Statements If you have provided your email address, trading statements will be emailed when trading activity occurs. Statements that are mailed use the standard Australia Post service, so please allow for delivery periods to your address location. We recommend that you subscribe to the email delivery service as this will enable you to receive statements overnight on the day of processing. Please ensure that you have provided your email address as part of the account information requested in the Account Opening Form if you wish to utilise this service. Please retain copies of your trading statements for tax purposes, as additional statements will incur a reproduction fee. Important It is important that clients read and understand the contents of issued documents and review the full contents of all statements issued and advise Bell Commodities of any discrepancies immediately. Bell Commodities representatives are available if you require assistance on receipt of your first trading statement. We recommend that clients maintain an order book of all instructions given to Bell Commodities and verify that the contents of the statements are in accordance with the instructions given. In the event that you do not receive a statement via email or postal delivery, please contact your Bell Commodities Adviser. Address Your postal address will appear at the top of the statement. Please advise Bell Commodities in writing immediately of any change of address. 1. Date This is the processing date for the business contained on the statement. Please note that non-sydney Futures Exchange is processed one day after the trade date due to the time difference between Australia and other major international financial regions. 2. Adviser Your adviser s initials. 3. Account The number assigned to your account. This should be quoted when placing all orders or making enquiries on your account, together with the full account name. This is also the agent reference that must be quoted on all bank deposits of funds into our segregated bank accounts. Please keep this account number confidential. In accordance with industry regulations, all client fund accounts are Segregated Accounts and this will show on your statement. How to read the futures and options statements V110801 3
HOW TO READ FUTURES & OPTIONS TRADING STATEMENTS Explanation of Trading Statement Trades Confirmations A B C D E F G The Exchange the contract is traded on. Contract Description Transaction Reference Buy Contract Sell Contract Expiry Month (prompt date) for this contract. Option Type C = Call An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument at a specified price within a specific time period. P = Put An option contract giving the owner the right, but not the obligation, to sell a stock, bond, commodity or other instrument at a specified price within a specified time. This is the opposite of a call option, which gives the holder the right to buy. H Strike Price The price at which a put or call option can be exercised. I J K L M N Price = Traded Price The currency denomination of the futures or options contract. Date = Trade Date Expiry Date - The day on which an options or futures contract expires and is no longer valid. Premium - The income received by an investor who sells (or paid by the buyer) Commissions and GST on commission 0 Futures trade as a result of an exercise or assignment of an option. Delivery and Cash Settlement P Q Details of opening (original) and closing (delivered) trades, including trade date, contract details, trade price and delivery (cash settled price) price. Realised profit and loss (excluding fees and associated charges) on delivered or cash settled contracts. Exercises R S T Option exercise, which includes trade date, market, contract, strike, Put or Call and exercised price. Premium value calculated by number of contracts * Tick size of contract * Traded price. Realised profit or loss excluding fee and associated charges. Commission change for exercised rights of the contract option as agreed to the client s commission schedule. 4
TAX INVOICE MR JOE CITIZEN 1 THE STREET MELBOURNE VIC 3000 K L o STATEMENT DATE: 24/06/11 ACCOUNT NUMBER: SAMPLE ADVISOR: A B C D E F G H I j T R A D E S C O N F I R M A T I O N S THE FOLLOWING TRADES HAVE BEEN EXECUTED THIS DAY FOR YOUR ACCOUNT AND RISK. MARKET CONTRACT DATE NUMBER BUY SELL CONTRACT DESCRIPTION REFERENCE PRICE CCY DEBIT/CREDIT CBOT WHEAT future 24-JUN-11 199 25 SEP 2011 7-590 USD 24-JUN-11 200 10 SEP 2011 8-130 USD TOTAL 25 10 EX- 14-SEP-11 COMMISSION USD 119.35 DR CBOT SOYBEAN MEAL option 24-JUN-11 214 5 AUG 2011 C 380.00 16.00 USD 8 000.00 DR TOTAL PREMIUM USD 8 000.00 DR TOTAL 5 EX- 22-JUL-11 COMMISSION USD 16.05 DR 24-JUN-11 215 5 DEC 2011 C 400.00 11.00 USD 5 500.00 DR TOTAL PREMIUM USD 5 500.00 DR TOTAL 5 EX- 25-NOV-11 COMMISSION USD 16.05 DR COMEX GOLD future 24-JUN-11 216 5 AUG 2011 EXERC 1500.00 USD TOTAL 5 EX- 29-AUG-11 COMMISSION USD 0.00 CR COMEX SILVER future 24-JUN-11 208 5 DEC 2011 39.535 USD 24-JUN-11 209 5 DEC 2011 40.205 USD 24-JUN-11 210 10 DEC 2011 40.685 USD 24-JUN-11 211 3 DEC 2011 41.440 USD 24-JUN-11 212 2 DEC 2011 42.390 USD TOTAL 20 5 EX- 28-DEC-11 COMMISSION USD 140.00 DR COMEX GOLD option 24-JUN-11 216 15 AUG 2011 C 1500.00 22.00 USD 33 000.00 DR TOTAL PREMIUM USD 33 000.00 DR TOTAL 15 EX- 26-JUL-11 COMMISSION USD 84.00 DR 24-JUN-11 201 3 DEC 2011 C 1500.00 74.00 USD 22 200.00 DR TOTAL PREMIUM USD 22 200.00 DR TOTAL 3 EX- 22-NOV-11 COMMISSION USD 16.80 DR m N p D E L I V E R Y A N D C A S H S E T T L E M E N T S DATE NUMBER MARKET BUY SELL CONTRACT DESCRIPTION TRADE PRICE CCY DEBIT/CREDIT 24-JUN-11 199 CBOT 8 WHEAT future SEP 11 7-590 USD 35 900.00 DR 24-JUN-11 5167 CBOT 8 WHEAT future SEP 11 6-692 TOTAL 8 8 EX- 14-SEP-11 P&L USD 35 900.00 DR COMMISSION USD 0.00 CR q R E X E R C I S E S DATE TRADE NUMBER MARKET BUY SELL CONTRACT DESCRIPTION TRADE PRICE CCY DEBIT/CREDIT 24-JUN-11 216 COMEX 5 GOLD option AUG 11 C 1500.00 22.00 USD 11 000.00 DR TOTAL 5 EX- 26-JUL-11 COMMISSION USD 0.00 CR S T How to read the futures and options statements V110801 5
HOW TO READ FUTURES & OPTIONS TRADING STATEMENTS Explanation of Trading Statement Purchase & Sale Part of the trading statement shows the closing out of the trade and the realised profit of loss (excluding fees and associated charges). T U Elimination or reduction of a current long or short position by entering into an equal and opposite transaction of the same security which is also called an offset. Details of the opening and closing trades including trade date, details of contract, trade price. Realised Profit or Loss. This is calculated by number of lots, difference between open and closing prices * futures underlying contract. Refer Q. Open Position V Trade Details. Refer A - H, W Settlement Price Closing market price from the previous business day. Closing market price from the previous business date. This price is used to calculate Y. X Currency product traded. Refer J. Y Z Debit/Credit unrealised P&L or mark to market. This is calculated Traded price settlement price * number of lots * Futures contract tick size. Currency conversion value. Journal Entries Journal entries are generally manual cash postings. All payments are posted with a transaction date, value date, payment type, description, currency and credit or debit amounts. 1. Interest posting. Interest is calculated daily and posted monthly. 2. Payments Funds received or paid to the client s bank account. These payments can be posted across all currencies. Commissions The amount of brokerage and GST (if applicable) charged in the currency of the contract that has been traded. (not shown) Currency conversion - The exchange rates (also known as the foreign-exchange rate, forex rate or FX rate) between two currencies specifies how much one currency is worth in terms of the other. It is the value of a foreign nation s currency in terms of the home nation s currency. The process by which the transaction currency is converted into the currency of settlement or the currency of the issuer for the purpose of facilitating transaction authorization, clearing, and settlement reporting. (not shown) 6
STATEMENT DATE: 24/06/11 ACCOUNT NUMBER: SAMPLE ACCOUNT NAME: MR JOE CITIZEN ADVISOR: T P U R C H A S E & S A L E DATE TRADE NUMBER MARKET BUY SELL CONTRACT DESCRIPTION TRADE PRICE CCY DEBIT/CREDIT 24-JUN-11 199 CBOT 10 WHEAT future SEP 11 7-590 24-JUN-11 200 CBOT 10 WHEAT future SEP 11 8-130 TOTAL 10 10 EX- 14-SEP-11 P&S USD 27 000.00 CR 24-JUN-11 208 COMEX 5 SILVER future DEC 11 39.535 24-JUN-11 211 COMEX 3 SILVER future DEC 11 41.440 24-JUN-11 212 COMEX 2 SILVER future DEC 11 42.390 TOTAL 5 5 EX- 28-DEC-11 P&S USD 57 125.00 CR v O P E N P O S I T I O N S DATE TRADE NUMBER MARKET LONG SHORT CONTRACT DESCRIPTION PRICE CCY DEBIT/CREDIT W X U Y 24-JUN-11 199 CBOT 7 WHEAT future SEP 11 7-590 USD 31 412.50 DR TOTAL 7 EX 14-SEP-11 SETTLEMENT PRICE 6-692 USD 31 412.50 DR TOTAL IN COUNTERVALUE AUD 33 146.47 DR AVERAGE LONG 7.59000 z 24-JUN-11 214 CBOT 5 S-BEAN MEAL opt AUG 11 C 380.00 16.00 USD 750.00 CR TOTAL 5 EX 22-JUL-11 SETTLEMENT PRICE 1.50 USD 750.00 CR TOTAL IN COUNTERVALUE AUD 791.40 CR AVERAGE LONG 16.00000 24-JUN-11 215 CBOT 5 S-BEAN MEAL opt DEC 11 C 400.00 11.00 USD 2 500.00 CR TOTAL 5 EX 25-NOV-11 SETTLEMENT PRICE 5.00 USD 2 500.00 CR TOTAL IN COUNTERVALUE AUD 2 638.00 CR AVERAGE LONG 11.00000 24-JUN-11 216 COMEX 5 GOLD future AUG 11 1500.00 USD 10 250.00 CR TOTAL 5 EX 29-AUG-11 SETTLEMENT PRICE 1520.50 USD 10 250.00 CR TOTAL IN COUNTERVALUE AUD 10 815.80 CR AVERAGE LONG 1500.00000 24-JUN-11 209 COMEX 5 SILVER future DEC 11 40.205 USD 129 325.00 DR 24-JUN-11 210 COMEX 10 SILVER future DEC 11 40.685 USD 282 650.00 DR TOTAL 15 EX 28-DEC-11 SETTLEMENT PRICE 35.032 USD 411 975.00 DR TOTAL IN COUNTERVALUE AUD 434 716.02 DR AVERAGE LONG 40.52500 24-JUN-11 216 COMEX 10 GOLD option AUG 11 C 1500.00 22.00 USD 37 400.00 CR TOTAL 10 EX 26-JUL-11 SETTLEMENT PRICE 37.40 USD 37 400.00 CR TOTAL IN COUNTERVALUE AUD 39 464.48 CR AVERAGE LONG 22.00000 24-JUN-11 201 COMEX 3 GOLD option DEC 11 C 1500.00 74.00 USD 23 610.00 CR TOTAL 3 EX 22-NOV-11 SETTLEMENT PRICE 78.70 USD 23 610.00 CR TOTAL IN COUNTERVALUE AUD 24 913.27 CR AVERAGE LONG 74.00000 J O U R N A L E N T R I E S DATE VALUE DATE PAYMENTS TYPE DESCRIPTION REG CC DEBIT/CREDIT 1 24-JUN-11 25-JUN-11 Interests Interests from 23/06/11 to 24/06/11 01 AUD 0.48 CR 24-JUN-11 24-JUN-11 Payments RECEIVED FUNDS FROM CLIENT 01 AUD 5 000.00 CR TOTAL 2 01 AUD 5 000.48 CR 24-JUN-11 24-JUN-11 Payments RECEIVED FUNDS FROM CLIENT 01 GBP 20 000.00 CR TOTAL 01 GBP 20 000.00 CR 24-JUN-11 24-JUN-11 Payments RECEIVED FUNDS FROM CLIENT 01 USD 10 000.00 CR TOTAL 01 USD 10 000.00 CR 2 2 How to read the futures and options statements V110801 7
HOW TO READ FUTURES & OPTIONS TRADING STATEMENTS Explanation of FINANCIAL account summary The account summary outlines the financial aspects of the client account. The Summary is shown per currency and is then notionally converted to the base currency on your account. Account cash balance physical cash held on the account as at close of business the previous day. Realised Profit and Loss - The total of all realised Profit and Loss including Delivery and Cash Settlements ( P-Q ) and Purchase and Sale Activity ( T-U ). Premium subtotal of all option premium. Payment/Receipt total of all funds received or paid to the client. Interest Refer Jounral Entries 1. Commission Total brokerage GST Service Tax New Cash Balance Total balance from all of the above. Total Equity - The value of the securities in the account, assuming that the account is liquidated at the current settlement price. Option Market Value Unrealised Profit and Loss on current open option position. Net Liquidation Value The sum of Total Equity and Option Market Value. If all of the positions were closed at settlement price, this would be the account balance (not including brokerage and/or GST. Initial Margin The deposit requirement using the defined exchange calculation method that you have positions denominated in. Margin Default Excess: The excess or shortage of the overall account. If a debit you are required to pay in funds to cover the margin call, if a credit the funds are available to you. Open Trade Equity - The unrealised Profit and Loss on current open futures transactions. Total Equity - The sum of New Cash Balance and Open Trade Equity. 8
STATEMENT DATE: 24/06/11 ACCOUNT NUMBER: SAMPLE ACCOUNT NAME: MR JOE CITIZEN ADVISOR: Processed exchanges : COMEX,ASXD,SFE,CBOT Non-processed exchanges : Account Summary as of 24/06/11 Seg. AUD Seg. GBP Seg. USD SPOT RATE 1.00000000 0.65830000 1.05520000 ACCOUNT CASH BALANCE 0.00 CR 0.00 CR 0.00 CR REALIZED PROFIT/LOSS 0.00 CR 0.00 CR 48 225.00 CR PREMIUMS 0.00 CR 0.00 CR 68 700.00 DR PAYMENTS/RECEIPTS 5 000.00 CR 20 000.00 CR 10 000.00 CR INTERESTS 0.48 CR 0.00 CR 0.00 CR COMMISSIONS 0.00 CR 0.00 CR 392.25 DR GST 0.00 CR 0.00 CR 39.24 DR NEW CASH BALANCE 5 000.48 CR 20 000.00 CR 10 906.49 DR OPEN TRADE EQUITY 0.00 CR 0.00 CR 433 137.50 DR TOTAL EQUITY 5 000.48 CR 20 000.00 CR 444 043.99 DR OPTION MARKET VALUE 0.00 CR 0.00 CR 64 260.00 CR NET LIQUIDATING VALUE 5 000.48 CR 20 000.00 CR 379 783.99 DR INITIAL MARGIN 0.00 CR 0.00 CR 385 424.00 DR MARGIN DEFAULT/EXCESS 5 000.48 CR 20 000.00 CR 829 467.99 DR BASE CURRENCY AUD SPOT RATE 1.00000000 ACCOUNT CASH BALANCE 0.00 CR REALIZED PROFIT/LOSS 50 887.02 CR PREMIUMS 72 492.24 DR PAYMENTS/RECEIPTS 28 718.00 CR INTERESTS 0.48 CR COMMISSIONS 413.90 DR GST 41.41 DR NEW CASH BALANCE 6 657.95 CR OPEN TRADE EQUITY 457 046.69 DR TOTAL EQUITY 450 388.74 DR OPTION MARKET VALUE 67 807.15 CR NET LIQUIDATING VALUE 382 581.59 DR INITIAL MARGIN 406 699.40 DR MARGIN DEFAULT/EXCESS 857 088.14 DR <<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<< END OF REPORT >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> How to read the futures and options statements V110801 9
LIST OF EXCHANGES Australian Securities Exchange (ASX) and ASX 24 Chicago Mercantile Exchange (CME) Chicago Board of Trade (CBOT) New York Board of Trade (NYBOT) Chicago Board of Options Exchange (CBOE) Philadelphia Stock Exchange (PHLX) New York Mercantile Exchange (NYMEX) Kansas City Board of Trade (KCBT) Minneapolis Grain Exchange (MGE) Montreal Exchange (ME) Winnipeg Commodity Exchange (WCE) Euronext Eurex London International Financial Futures Exchange (LIFFE) London Metal Exchange (LME) International Petroleum Exchange (IPE) Singapore Exchange (SGX) Hong Kong Exchange (HKEX) Tokyo International Financial Futures Exchange www.asx.com.au www.cme.com www.cbot.com www.nybot.com www.cboe.com www.phlx.com www.nymex.com www.kcbt.com www.mgex.com www.me.org www.wce.ca www.euronext.com www.eurexchange.com www.liffe.com www.lme.co.uk www.theice.com www.sgx.com www.sehk.com.hk www.tfx.co.jp 10
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Bell Commodities GPO Box 4718, Melbourne VIC 3001, Australia Toll Free 1800 672 405 Fax 03 9256 8787 www.bellpotter.com.au Bell Potter Securities Limited ABN 25 006 390 772 AFS Licence No. 243480