FX DOUBLE LEG
The FX Double Leg page is used to book a double-sided (hedged) trade. To book a double leg trade click on Trading > FX Double Leg in the navigation pane.
In order to successfully book a double leg trade you must have at least two currencies offered in Entity Settings, and an at least one active counterparty (account) configured.
Booking a Trade
In order to book a trade you will need to input the details of the trade. The details that you can fill out are:
- Counterparty (required) - Specify a Counterparty/Account name.
- Contact (optional) - Specify a contact that requested or is associated with the trade. The contacts that will be available are contacts associated with the specified counterparty.
- Book (optional) - You can specify the book you would like this transaction to be under, if your business segregates transactions into different trading books.
- House Action (required) - Specify an action (Buy/Sell). It is set up from YOUR perspective. For example if the Action is set to Buy then your business (the house) would be buying the left-hand currency specified in Pair fields.
- Pair (required) - Specify the currency pair. The currencies that are available are the currencies that have been selected in the entity settings page. If you do not see the desired currencies listed, you will need to add the currency in entity settings. After you specifying the currencies, a default rate will typically be automatically populated. If you would like to use your own rate, you can enter it manually in the Rate field below.
- Amount (required) - Enter the amount the house is buying or selling (left-hand currency of the pair). Once you have entered an amount, the counter amount will automatically populate based on the rate. Alternatively you can enter a Counter Amount, and the Amount will automatically populate. Kooltra also supports the use of shortcuts when entering amounts such as the use of 'k' for thousands and for 'm' (millions). Ex. If you would like to book a trade for 100,000.00 you can enter 100k. Kooltra will automatically format this to 100,000.00.
- Fee (optional) - Enter a trade fee and select the corresponding currency. The currency needs to be one of the pair currencies.
- Trade Date (required) - When you are entering a trade, the trade date will automatically populate as todays trade date. If it is before 5pm New York time, then the trade date will match the current date. If it is after 5pm but before midnight, then the trade date will be for the next business day.
- Value Date (required) - By default, the Value Date will be default to spot value date, which is typically T+2 business days for most currency pairs, or T+1 for currency pairs such as USDCAD. You can select your own Trade Date and Value Date, with the only restriction being that the trade date and value date are greater than or equal to today's trading date.
- Comment & Client Comment (optional) - You can add internal comments (ex. comments for compliance officers) and a client comment. This information is stored on the trade and is available for subsequent report.
- House Action (required) - Specify an action. It is default to be the counter action of the trade booked for the Account above. The action is set from YOUR perspective.
- Counterparty (required) - Specify an account that the trade is hedged against. This Counterparty will need to be in the same entity and have the settlement type Nostro.
- Hedge Rate & P/L (optional) You can enter the rate used to hedge this trade (ex. if the hedge was booked at a later date). The P/L will be automatically calculated based on the differences between the rate and hedge rate.
Once you have entered all of the details of the Trade, click Deal Trade. This will add a Status field which by default is Open, and will assign Trade ID at the top of the window. You can also click on the Deal Trade and New button which will also execute the trade, and open a new trading window allowing you to book trades in rapid succession.
Note that if you have made mistakes on your ticket, you can quickly clear the information by clicking on the Reset button.
Updating/Cancelling a Trade
Kooltra allows users to modify or cancel Open trades. In order to do this, you will need to access the details of the trade. This can be done in many different ways such as clicking the transaction ID on the FX Blotter page, or searching for the Trade ID in the global search bar.
Once you have opened the trade details, you can ammend any trade detail that is not greyed out. This includes amending the Counterparty, Contact, Book, Action, Pair, Amount, Rate, Counter Amount, Fee, Value Date, Comment, Client Comment and Hedge Rate. Once you have amended the desired field(s), click on the Update Trade Button to complete the update.
Alternatively, you may also cancel the trade by clicking on the Cancel Trade button. Once the trade has been cancelled, it cannot be reopened.
The details tab can be accessed at the top of the FX Single Leg trade entry page. This tab is typically used to view details of trades that have entered Kooltra through the API. The available details are Trade ID, External ID, Liquidity Provider, LP Trade ID, Source App, and Platform Venue.
In addition to Comments and Client Comments, users can input additional notes about the trade in the Notes tab.
The history tab tracks changes made to the trade. This includes tracking what user made the change and at what time.
The advanced tab allows you to resend the trade confirmation, which is sent to the primary contact of the counterparty (account).
booking a trade, single leg, trading, unhedged