Mark-to-market Seafood example
A member sells FPSA MAR10, 100 lots (100 ton) at NOK 34.75 the 10th of February 2010.
The closing price the next day is set to NOK 33.
Mark-to-Market Report 10-02-2010
|
Instrument |
Position |
Traded Price |
Closing T |
Trade Value |
Market Value |
Profit/Loss |
Settled |
To be Settled |
|
FPSA MAR10 |
-100 |
34.75 |
33 |
3 475 000 |
3 300 000 |
175 000 |
0,00 |
175 000 |
| Position | 100 lots equals 100,000 kg per month |
| Traded Price | traded price |
| Closing | closing price on 10.02.2010 |
| Trade Value | value of the contract based on the traded price [100x1000x34.75] |
| Market Value | value of the contract based on the closing price [100x1000x33] |
| Profit/Loss | total profit/loss for the net position in that contract. Difference between the Trade Value and The Market Value for the net position. In this example the clearing member has gained NOK 175 000 |
| Settled | the amount that has been settled on the Collateral and Settlement account up until the previous trading day. Calculated based on the difference between the traded price and the closing T-1 (Historical settlements). |
| To be Settled | the amount being settled on the Collateral and Settlement account. The difference between Profit/Loss and Settled which equals the change in closing price multiplied by the position. |
The last day of the delivery period the closing price is equal to the settlement price (average spot price during the delivery period) and the number in the Profit/Loss column is therefore the total realised profit/loss for the net position in the specific contract.
| FPSA MAR10 | Position | Traded Price | Closing Price | M2M NOK |
| 10 Feb | -100 | 34.75 | 33 | 175 000 |
| 11 Feb | 32 | 100 000 | ||
| 12 Feb | 32.5 | -50 000 | ||
| ... | ... | ... | ||
| 29 Mar | 32.5 | ... | ||
| 30 Mar | 33 | -50 000 | ||
| 31 Mar | 34 | -100 000 |