9.2.2 Realized Revaluation of Open Positions
As part of this running, this process the system will equal the Holding Cost of the portfolio to the Current Market Price and account for the Realized Gain or Loss.
Table 9-4 Event Code - Description
| Event Code | Description |
|---|---|
|
ERVL |
Revaluation of Long Position |
|
ERVS |
Revaluation of Short Position |
Let us extend the above example and see what happens when Realized Revaluation is done for all Open Positions in Futures:
Table 9-5 Existing Positions
| Field | Value |
|---|---|
|
Opening Position for the day |
10 Contracts Long |
|
Last Market Price |
230 USD for 10 contracts. |
|
Deals for the Day |
2 Contracts Long at 25 USD/Contract |
Table 9-6 Result
| Field | Value |
|---|---|
|
Result of Settlement Process |
12 Contracts at 280 USD |
|
Average Cost of Holding |
9280/12) = 23.33 USD |
|
New Price per Contract |
25 USD |
|
Revaluation Gain |
1.67 USD per contract = 20.04 for 12 contracts. |
|
New Holding Cost |
25 USD per contract * 12 contracts = 300 USD. |
Parent topic: Automatic Events Executed during End of Day for Futures