Agiboo tutorial 1.5
What are possible risks during a commodity trade, and can we do something about it? Yes, we can! In our Agiblocks tutorials, we show you all you need to know, presented in neat bite-sized video’s. You can find the full introduction to our series here. In our latest addition to the web series, we dive into Agiblocks’ very convenient capabilities to show you your position management and mark to market in real-time, in just a few clicks.
The term position management has been mentioned in previous episodes, but it is definitely important enough to cover in more detail in a stand-alone episode in the Agiblocks Tutorials we’ve launched as part of our Commodity Knowledge Center.
Position Management is all about quantities and timing. Agiblocks provides real-time position management and shows you whether you are long or short on a certain quality for a specific period in time. The quality is important, as not all your commodities are exchangeable. For example, you can be long on fair-fermented cocoa beans from Ghana and short on well-fermented cocoa beans from Ecuador; you cannot replace one with the other. That is why Agiblocks offers ‘position hooks’, a category defined by quality properties visible in a certain time period. All equal qualities for a period are automatically calculated to one position number. In Agiblocks, you can dive into all underlying contracts and deliveries which will show you the build-up of that particular position. Moreover, the futures position is also visible, informing you immediately if you are properly hedged – or not.
Mark to Market
Position management is all about quantities, whereas mark tot market is all about the finances. A mark to market-view provides the valuation of all assets and gives you in addition an unrealized P&F, profit and loss.
The mark to market in Agiblocks considers all assets; physical, inventory, derivates such as options, futures and OTC’s, and so on. It allows you to quickly grasp your overall unrealized P&L, grouped by commodity or even by counterparty.
Interested in finding out more? Check out our newest video!