Oil Trading

Introduction

When a highly successful privately held trader wanted an expert’s view of risk management, they turned to Trident Global. Our independent view of the traders’ policies, controls and risk oversight has provided a roadmap for ongoing improvements.

Challenge

Our Clients mostly Traders were looking for an automated customized application which can position daily PNL & provide the multiple auto updates regarding trades & prices like opening price, live price, etc. As most of the Traders nowadays faces challenge in positioning the daily PNL & even Options traders needed a way to measure the sensitivity of an option’s price to quantifiable factors. Trident Global collectively gathered all the essential requirements of Traders & designed an application where they would get their automated required values on a single platform.

Solution

Trident Global came up with an Automated Customized Application for traders to monitor, which is connected directly to the market. It shows real time trades & prices mainly the opening price, live price & expiration date too plus the product, quantity & date. Option Calculator is integrated with Application to calculate Greeks for the portfolio. Due to which Gamma, Theta, Vega & Delta values appeared for PNL generation which provided a way to measure the sensitivity of an option's price to quantifiable factors. As per requirement, Month to Date (MTD), Year to Date (YTD) PNL values generated & they can now see separate PNL list date wise with an auto updated trade detail. It can also be customized to fit individual company requirements.

Result

As promised, Trident Global helped the clients in increase of efficiency, productivity & saved on their cost.

Benefits

• Real time trades & prices.
• Connected directly to market.
• Calculate Greeks - Gamma, Theta, Vega & Delta values for the portfolio. Greeks are the risk measures associated with various positions in option trading. The common ones are Delta, Gamma, Theta and Vega. With the change in prices or volatility of the underlying stock, you need to know how your option pricing would be affected. Greeks in options help us understand how the various factors such as prices, time to expiry, volatility affect the option pricing.

• Delta measures the sensitivity of an option’s price to a change in the price of the underlying stock.
• Gamma measures the exposure of the option delta to the movement of the underlying stock price.
• Theta measures the exposure of the option price to the passage of time.
• Vega measures the exposure of the option price to changes in volatility of the underlying.

Introduction

Traditionally, the success of traders depended on their superior knowledge of prices at different locations combined with their logistics capacity to move goods at the right time to the best markets. The energy & commodities trading sector has, however, been transforming rapidly.

Challenge

One of our Client’s most frustrating aspects of Oil & Commodity trading was how to calculate the profit, loss, and risk of a trade. Moreover, they keep asking for real time PNL report.

Solution

Trident Global ensures Traders to meet their desired objectives in the most cost effective way by providing Oil Inventory Management which dealt with Oil & Commodity Trading. Henceforth, application provided trade booking, real time PNL report in the form of monthly, quarterly, half-yearly and annually report generation, as per their expectations. It also provided calendar view for nomination date, confirmation date, and holidays. It is customized to fit individual company requirements. Analysis tools are added to provide technical analysis, charts and quantitative work display. Additionally, Trident Global makes it useful for accounting purposes via integrating it with the ERP system. In this ERP system, features included:

• Desktop application
• Offline inventory management – Supplier term contract, order / delivery input screen, delivery details report, order price balance sheet, purchase price balance sheet, product price sheet & delivery status report
• Internal trade transfers
• Invoices generation
• User management to provide roles for any particular rights by admin
• Online transactions, etc.