In this guide we will learn how to setup Contract Specs and what they are used for in the system.
Contract Specs are a way to specify how a type of derivative trade will be valued as well as how it will lookup related data such as products, calendars and settlement data.
Step 1: Add a new Contract Spec
Click the Contract Specs item in the Admin & Settings area
Click “Add” to open the Contract Spec Drawer.
Depending on the Type of trade that you select different fields will be available to fill in. Not all fields are required.
Check out the guide on Market Data Setup to setup Forward Curves and Series data if you plan to use the Market Data Warehouse and Mark-To-Market feature of OpenTRADE.
For Futures you need to enter a Lot Size that corresponds with the correct currency and unit of measure that the futures contract is specified for on the exchange. If you are capturing Forward Curves and historical series data then you should select the appropriate items as well.
For Futures Options you will also need to select the Exercise To field to specify the appropriate Futures contract that the option will create when exercised. You will also need to select an Options Chain if you want the system to calculate the Mark-To-Market of the trades.
For Commodity Swaps and Options you will also need to select a Fixing Series so that the trades can be automatically settled when the data from the series is updated.
Next Up…
- Capture Futures & Futures Options
- Capture Commodity Swaps
- Capture Commodity Options