Hedge Balances Details
The Hedge Balances Details expands on the Hedge Balances table by showing a transactional history of all cash and hedging trading activity connected to a specific futures expiration. This panel can be added to a workspace by clicking on Connect in the main toolbar and selecting Hedge Balances Details in the Hedge grouping.
In order to fully utilize this panel you will need to ‘Link’ the Hedge Balances Details to the Hedge Balances. When the Hedge Balances Details is first inserted into a Workspace you will see the prompt to link the workspace to the Hedge Balances.
Linked panels below:
Once linked, any futures contract selected in the Hedge Balances will automatically pull in the cash and futures trading history for the futures contract. Seeing the history will help in tracking which futures hedges cover which cash transactions.
Hedge Balances Details Layout
Below is a top level overview of the Hedge Balances Details panel.
The hedge account and futures will update as the futures contract or hedging account selected in the Hedge Details panel changes. View up to 29 days of transaction history inserting a value or using the arrow icons to change the ‘look back’ period. Filter the transactions displayed by typing in a keyword like ZCZ25, Filled or 500.
Cash and Hedge Transactions
The top modal in the Hedge Balances Details panel will display all of the cash and futures orders that have been transacted for the underlying futures contract. One of the more important columns is ‘Unlinked Size’ as the values here will show you the specific cash or futures orders that are summed in the ‘Hedge Balance’ column in the Hedge Balances panel.
For ZCZ25 above, the elevator is currently ‘long’ 1000 bushels of ‘unhedged' cash grain. As additional cash grain is sold by producers to the elevator, the Hege Balances column will increase by that amount and the order details will be visible in the Unlinked size column. Below, an additional 500 units of cash has been sold to the elevator.
The elevator is now long 1500 bushels of unhedged cash grain. If an additional 1050 bushels or more are sold to the elevator, a futures hedge will automatically be executed to cover the cash position. As the hedge threshold is set to 2550 (futures contract underlying 5000 bushels * .51 = 2500), with an existing inventory of 1500 an additional 1050 bushels will set off the auto futures hedge. Below an additional 1050 bushels is sold the elevator’s ‘Chicago New Crop 2025’ bid via the Basis Trade panel summing to a total cash position of 2550.
Once the cash and is executed, the futures hedge is also placed. Now the Hedge Balances updates with with a short -2450 position as the 5000 futures bushels are subtracted from the 2550 cash position.
In the Cash and Hedge modal, the cash and futures orders are now visible.
Cash and Hedge Details
In the lower part of the Hedge Balances Details is the links section which shows the details of the hedges and the cash offers they cover. For our example, below you an see all of the cash orders that transpired up to the order that triggered the autohedge based on the 51% threshold.
A complete audit trail is visible for the transaction from the Basis Trade to the Hedge Balances to the Hedge Balances Details.
Hedge Balances Details Columns
Add or remove any data fields by clicking on the Columns in either of the modals of the Basis Trade Details panel.
Hedge Balances Details Settings
Customize the display of the panel by clicking on the ‘cog wheel’ icon to open up the Settings dialogue.