Reading Your Futures Statement

Transcription

1 RBC Dominion Securities Inc. Reading Your Futures Statement A guide for clients of RBC Dominion Securities

2 At RBC Dominion Securities, we have been helping individual and corporate clients achieve their financial goals since Today, we are Canada s leading provider of wealth management services, trusted by more than 400,000 clients globally. In the area of commodity/financial futures, we provide some of the most comprehensive services available from any investment firm in Canada, including professional advice and trade execution. Our Futures Risk Group provides access to leading commodity research advisors who provide insight on various commodity sectors and hedge strategies. This guide will detail each section of your futures statement, page by page, to help you understand how trade confirmations, gains/losses and monthly activity will be summarized in your statement. If you have any questions about your futures statement, please speak with your Futures Specialist today.

3 Your Futures Statement The first page of your Futures Statement identifies the portfolio, the time period covered in the statement and the name and contact information of your Futures Specialist. Opening Account Balance This section shows the cash balance in the account at the beginning of the trading period in the various currencies. Futures/Options Confirmations This section displays the confirmed futures and options activities for the time period of the statement. (1) The date of the trade (2) Long/buy activity (3) Short/sell activity (4) Indicates total quantity (*) (5) Contract month (6) Product (7) Price (8) Commissions/Clearing/Exchange charges and other fees (most commonly include NFA, RBC Clearing, Give Up, Desk Execution and CDCC) (9) Base currency of product Salesman Account TST Your Commodity Broker BILL AND MARY CUSTOMER YOUR IA NAME 123 MAIN ST TORONTO, ON TORONTO, ON M4M 4M Page 1 Monthly Statement For: MAY 01, 2015 through MAY 31, O P E N I N G A C C O U N T B A L A N C E S CAN DOLLAR 0CR US DOLLAR 0CR F U T U R E S / O P T I O N S C O N F I R M A T I O N S Date Long Short Contract/Description Strike Price Curr Amount /19/15 1 JUN15 IMM B-PDS USD 1* * USD 8 COMMISSION 9 USD 62.50DB* CLEARING USD 2.01DB* 5/19/ JUN15 6 IMM E-S&P USD 4 1* * USD COMMISSION USD 62.50DB* CLEARING USD 1.42DB* 5/20/15 1 JUL15 CBT WHEAT P /2 USD DB 1* * Premium Paid USD DB* EDAT:06/26/15, COMMISSION USD DB* CLEARING USD 4.72DB* 5/20/15 1 JUN15 IMM E-S&P USD * 1* USD COMMISSION USD 62.50DB* CLEARING USD 1.42DB* READING YOUR MONTHLY FUTURES STATEMENT 3

4 Recap of Confirm Activity for the Time Period (A) Total P&L on Confirmations (USD) Net value of Options Premium [Paid Received] in the currency of the product (B) Commissions on Confirmations (USD) Total commissions paid for all products traded. Commissions are paid in USD or CAD. (C) Fees on Confirmations (USD) Total clearing costs paid for all products traded in the currency of the product (D) Realized Futures on Confirmations (USD) Clearing/ Exchange fees and commissons paid on all futures (E) Realized Options on Confirmations (USD) Total P&L on Confirmations + Clearing/Exchange fees and commissions paid on all options trades in the currency of the product (F) Total Realized Futures on Confirmations (CAD) (D)* Exchange rate (G) Total Realized Options on Confirmations (CAD) (E) * Exchange rate Realized Futures Gains/Losses This section shows the profit or loss realized from closing out an open (Futures/Options/Forward) position. (1) The sum of all profits and losses for the time period of the statement (CR Profit; DB Loss) Itemized Cash Activity All transfers from a margin account to a futures account are noted as credits, while transfers from a futures account to a margin account will be noted as debits. (2) The sum of all cash activity in the account Recap of Confirm Activity R E A L I Z E D F U T U R E S G A I N S / L O S S E S Date Long Short Contract/Description Strike Price Curr Amount 5/19/15 1 JUN15 IMM E-S&P USD 5/20/15 1 JUN15 IMM E-S&P USD 1* 1* P & S USD CR* Profit Or Loss From Offset Trades USD CR I T E M I Z E D C A S H A C T I V I T Y /19/15 TRANSFER WIRE RECEIVED FROM MARGIN ACCOUNT 5/19/15 CAD 50,000.00CR 5/19/15 TRANSFER WIRE RECEIVED FROM MARGIN ACCOUNT 5/19/15 USD 30,000.00CR 5/20/15 TRANSFER WIRE RECEIVED FROM MARGIN ACCOUNT 5/20/15 USD 5,000.00CR Total Cash CAD 2 50,000.00CR** Total Cash USD 35,000.00CR** C L O S I N G A C C O U N T B A L A N C E S CAN DOLLAR US DOLLAR 50,000.00CR* 34,602.93CR* CLEARING USD 1.42DB* Total P&L On Confirmations USD Commissions On Confirmations USD Fees On Confirmations USD Realized Futures On Confirmations USD Realized Options On Confirmations USD Total Realized Futures On Confirmations CAD Total Realized Options On Confirmations CAD DB DB 9.57DB DB DB DB DB A C E G B D F Closing Account Balances This section shows the cash balance in the account at the end of the trading period in the various currencies, equal to: Opening Account Balance + (D) +/- (E) +/- (1) +/- (2), or: Opening Account Balance +/- Realized Futures on Confirmations (D) +/- Realized Options on Confirmations (E) +/- The sum of all profits and losses for the time period of the statement (1) +/- The sum of all cash activity in the account (2) 4 RBC DOMINION SECURITIES

5 Open Positions Summary This section displays the open (Futures/ Options/Forwards) positions in the account at the end of the time period covered in the statement. (1) Option type (Put/Call) (2) Option strike (3) Futures Last Trading Date (FLTD) (4) Expiration Date of Option (EDAT) (5) Underlying Settlement Price of Futures (UNSP) (6) The delta of the open position (DLTA)/(DQ) (7) The closing price of the open Futures/Forward/Option position (8) Value of open option position in the currency of the product [Total number of contracts * Settlement price * Futures Multiplier] (9) The value of the open option position in Futures Equivalent [DB Short Futures, CR Long Futures] (10) The average entry price for the total quantity traded (11) Unrealized gain/loss on the open futures position [Total # of contracts * (Settlement price Avg Bought/Sold) * Futures Multiplier] F U T U R E S / O P T I O N S O P E N P O S I T I O N S Date Long Short Contract/Description Strike Price Curr Amount 5/20/15 1 JUL15 CBT WHEAT P /2 USD 1,031.25CR 1* * Settlement /8 USD 1,031.25CR* Avg Bought Avg Sold FLTD:07/14/15, EDAT:06/26/15, UNSP:4.77, DLTA: , DQ:.56-, Net Fut:.56DB In The Money CR USD * Value in CAD 1,283.39CR* 5/19/15 1 JUN15 IMM B-PDS USD DB Total Value in Base Currency * * Settlement USD 68.75DB* 10 9 Avg Bought Avg Sold FLTD:06/15/15, Value in CAD 85.56DB* Total Cash Market Value CAD 85.56DB** Total Non-cash Market Value CAD 0CR** Total Long Option Value CAD 1,283.39CR** Total Short Option Value CAD 0CR** Net Option Value CAD 1,283.39CR** Net Liquidity CAD 94,261.18CR** 8 A C E B D F Total Value in Base Currency of Statement (A) (B) (C) (D) (E) (F) Marked to market value on all futures positions Marked to market value on forward positions Premium value of open long option positions Premium value of open short positions Net Option Value in base currency of statement [(C) (D)] Liquidating value of account [Closing Account Balance + Total Cash Market Value (A)+/- Total Non-Cash Market Value (B)+/- Net Option Value (E)] READING YOUR MONTHLY FUTURES STATEMENT 5

6 Margin Requirement Summary (1) The funds required as a deposit on open positions. A zero balance implies no positions. (2) The funds required to maintain positions in the account; if Total Equity (9)in the account falls below the Maintenance Margin (2), a margin call is generated. (3) The excess/deficit amount of funds available/required in the base currency. A credit (CR) indicates excess cash and a debit (DR) indicates a deficit. (4) The difference between Total Equity (9) and Initial Margin (1). A negative number represents the amount under initial margin. (5) The difference between Total Equity (9) and Initial Margin (1), when Total Equity is less than the Maintenance Margin (2) which is known as the margin call amount M A R G I N R E Q U I R E M E N T S U M M A R Y Margin Requirement Equity New Call or Amt Total Margin Calls Initial Maintenance Excess/Deficit Under Init Rqmts Amount No /Age CAD 0CR 0CR 50,000.00CR 0CR USD 2,288.75DB 1,986.75DB 34,534.18CR 0CR Total Value in Base Currency CAD 1 2,848.35DB 2 2,472.51DB 3 92,977.79CR 4 0CR 5 0CR / A C C O U N T V A L U E S U M M A R Y Account Unrealized G/L Unrealized G/L Total Net Option Net Balance on Futures on Forwards Equity Value Liquidity CAD 50,000.00CR 0CR 0CR 50,000.00CR 0CR 50,000.00CR USD 34,602.93CR 68.75DB 0CR 34,534.18CR 1,031.25CR 35,565.43CR Total Value in Base Currency CAD 6 93,063.35CR DB 8 0CR 9 92,977.79CR 10 1,283.39CR 11 94,261.18CR P R O F I T & L O S S S U M M A R Y Futures Options Options Profit and Loss Long Premium Short Premium Commission Fees MTD CAD 0CR 0CR 0CR 0CR 0CR MTD USD CR DB 0CR DB 9.57DB Net CAD CR* DB* 0CR* DB* 11.91DB* YTD CAD 0CR 0CR 0CR 0CR 0CR YTD USD CR DB 0CR DB 9.57DB Net CAD CR* DB* 0CR* DB* 11.91DB* Account Value Summary (6) The closing account balance (7) The unrealized gain/loss on open futures positions (8) The unrealized gain/loss on open forward positions (9) The total equity, equal to (6)+/- (7) +/- (8) (10) The total value of open long or short option positions in clients account in base currency of account (11) The value of the account if all open positions are liquidated at settlement prices noted on the statement, equal to (9)+ (10) Profit & Loss Summary (12) The profit and loss for closed Futures/Forwards positions in each currency, in month-to-date (MTD) and year-to-date (YTD) values (13) The amount spent on purchasing long options (14) The premium collected for selling short options (15) The commissions paid (16) The fees paid 6 RBC DOMINION SECURITIES

7 If you have any questions about your futures statement, please speak with your Futures Specialist. Futures or options trading involves substantial risk, may result in serious financial loss, and is not suitable for all investors or portfolios. The information contained in this brochure is not intended as a recommendation directed to a particular investor or class of investors and is not intended as a recommendation in view of the particular circumstances of a specific investor, class of investors or a specific portfolio. You should not take any action with respect to any securities or investment strategy mentioned in this brochure without first consulting your own investment advisor in order to ascertain whether the securities or investment strategy mentioned are suitable for your circumstances. The information contained herein has been obtained from sources believed to be reliable at the time obtained but neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers can guarantee its accuracy or completeness. This brochure is not and under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. It is furnished on the basis and understanding that neither RBC Dominion Securities Inc. nor its employees, agents, or information suppliers is to be under any responsibility or liability whatsoever in respect thereof. RBC Dominion Securities Inc.* and Royal Bank of Canada are separate corporate entities which are affiliated. *Member-Canadian Investor Protection Fund. Registered trademark of Royal Bank of Canada. Used under licence. RBC Dominion Securities is a registered trademark of Royal Bank of Canada. Used under licence. Copyright All rights reserved. 15_90098_ (07/2015)

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