Hedging
Protect your metal trading positions from price volatility with integrated LME hedging workflows. Track buy and sell contracts, manage margin requirements, and analyze exposure in real time.
PRICE PROTECTION
Hedging Buy
Lock in future metal purchase prices with futures contracts. Protect against cost increases by securing today's rates for tomorrow's procurement.
How it works
A hedging buy protects against potential increases in metal costs. Enter into futures contracts to purchase a specified amount of metal at a set price for future delivery. If market prices rise, you won't pay the higher price—your hedge locks in today's rate.
Operating Unit Tracking
Create hedging buy records by unit with auto-generated sequences for easy data tracking and reporting.
Regional Classification
Categorize hedges as Overseas or Domestic to maintain separate tracking for international and local positions.
Purpose Segmentation
Classify hedging buy contracts as Manufacturing or Trading to improve data organization and analysis.
Metal Group Selection
Select specific metal groups for hedging buy products to align contracts with your procurement strategy.
Supplier & PO Linking
Create hedging buy records with ASN, supplier details, and purchase order references for complete traceability.
Multi-Level Approval
Define approval workflows that route hedging buy contracts through appropriate review levels before execution.
Reverse Entry Tracking
Access reverse entry records through smart buttons to view offsetting or closing transactions.
Auto Calculations
System calculates hedge values, margins, and exposure automatically based on contract parameters and market data.
Log Printing
Generate printed logs of hedging buy transactions directly from the action menu for audit trails.
LME Type Support
Handle multiple London Metal Exchange metal types within a single hedging workflow.
Reporting & Analytics
Access detailed reports showing hedging buy transactions, positions, and performance metrics.
REVENUE PROTECTION
Hedging Sell
Secure favorable selling prices before delivery. Lock in rates today to protect against falling metal prices in the future.
How it works
Hedging sell protects companies who produce or hold metals from falling market prices. If you expect to sell metal in the future but fear prices might drop, enter into a futures contract to sell at a fixed price today for delivery later. This locks in your revenue regardless of market movements.
Operating Unit Tracking
Create hedging sell records by unit with auto-generated sequences for structured data management.
Regional Classification
Categorize sell hedges as Overseas or Domestic for separate tracking of international and local sales positions.
Purpose Segmentation
Classify hedging sell contracts as Manufacturing or Trading for improved categorization and reporting.
Metal Group Selection
Select metal groups for hedging sell products to align sales protection with your product mix.
New Deal Indicator
Flag contracts as New Deals to distinguish fresh positions from existing or rolled-over hedges.
Sales Order Linking
Create hedging sell records linked to supplier and sales order details for full transaction visibility.
Multi-Level Approval
Define approval workflows to ensure critical hedging sell positions are reviewed before commitment.
Reverse Entry Tracking
View reverse or offsetting entries through smart buttons to monitor position closures.
Auto Calculations
System automatically calculates hedge values, margins, and net exposure based on contract terms.
Log Printing
Generate transaction logs from the action menu for compliance and audit documentation.
LME Type Support
Manage multiple LME metal types in a unified hedging sell workflow.
Reporting & Analytics
Access detailed hedging sell reports showing transaction history, positions, and profitability analysis.
LOAN METAL EXCHANGE
Hedging LME
Manage price risk for LME-traded metals including aluminum, copper, zinc, nickel, lead, and tin through integrated futures contracts.
How it works
LME hedging allows companies producing, purchasing, or trading LME metals to lock in prices through futures contracts. This protects against price fluctuations by fixing rates today for future delivery, providing cost certainty in volatile markets.
Operating Unit Tracking
Create LME hedging records by unit and type with auto-generated sequences for organized data tracking.
Regional Classification
Record both long and short positions based on your price movement expectations and risk strategy.
Purpose Segmentation
Classify LME hedges as Manufacturing or Trading to categorize and analyze positions by business function.
Metal Group Selection
Select metal groups for LME hedging to match contracts with your specific commodity exposure.
Exchange Fee Tracking
Enable exchange fee tracking to capture and account for LME trading costs within each hedge record.
Commission Management
Flag and track commission charges to maintain accurate profitability calculations on hedged positions.
Broker Integration
Create LME hedges with broker ID, trade date, and quantity details for complete execution records.
Multi-Level Approval
Define approval workflows that route LME hedge contracts through appropriate authorization levels.
Auto Calculations
System automatically calculates hedge values, margin requirements, and position exposure for LME contracts.
Log Printing
Generate printed logs of LME hedge transactions from the action menu for audit and compliance.
LME Trade Purpose
Classify hedges by multiple LME trade purpose types to segment and analyze different hedging strategies.
Reporting & Analytics
Access comprehensive LME hedging reports showing transaction details, position summaries & performance metrics.
POSITION ANALYSIS
Hedging Mapping
Compare hedging positions against actual exposure to assess the impact of potential profits or losses. Analyze the difference between futures contracts and underlying metal positions.
How it works
Hedging mapping compares your hedging positions (futures contracts) with actual exposure (planned production or sales volumes). This analysis shows how effectively your hedges protect against price risk and identifies any gaps or mismatches that could lead to unhedged exposure.
Operating Unit Tracking
Create hedging mapping records by unit and type with auto-generated sequences for structured analysis.
Purpose Segmentation
Categorize mapping records as Manufacturing or Trading to analyze hedge effectiveness by business unit.
Metal Group Selection
Select metal groups for mapping to compare hedges against specific commodity exposures.
Buy Position Linking
Select hedging buy records to compare purchase hedge positions against planned procurement volumes.
Sell & LME Linking
Link hedging sell and LME records to analyze differences between sales hedges and actual delivery obligations.
Position Comparison
Compare buy, sell, and LME positions to identify coverage gaps and calculate net exposure across all hedges.
Multi-Level Approval
Define approval workflows for hedging mapping to ensure position analyses are reviewed appropriately.
Auto Calculations
System automatically calculates position differences, net exposure, and potential profit or loss scenarios.
Log Printing
Generate printed mapping analysis logs from the action menu for documentation and review.
Remarks & Notes
Add remarks about LME positions, market conditions, or strategy adjustments for future reference.
Reporting & Analytics
Access detailed hedging mapping reports showing position comparisons, exposure gaps, and risk summaries.
COLLATERAL MANAGEMENT
Hedging Margin Update Entry
Track and update margin requirements for open hedging positions. Maintain accurate records of collateral held by exchanges or brokers.
How it works
Margin update entries record and track collateral requirements for hedging positions. As positions move in and out of the money, margin balances fluctuate. This module ensures you maintain accurate records of initial margin (IM), variation margin (VM), and available limits across all brokers.
Operating Unit Tracking
Create margin update entries by unit with auto-generated sequences for organized collateral tracking.
Broker Purpose Types
Select broker-specific purpose types including commission, interest, and other charges for accurate margin updates.
Broker Selection
Select brokers in margin line details to update collateral balances for specific trading relationships.
IM & VM Limits
Auto-load initial margin and variation margin limits based on selected broker to enforce trading constraints.
Margin Balance Tracking
System auto-loads IM, VM, and margin balances based on selected broker for real-time collateral visibility.
IM & VM Utilization
Manually enter initial and variation margin utilized amounts to track collateral deployment across positions.
Quick Entry Creation
Hedging teams can quickly create margin update entries for multiple brokers in a single session.
Multi-Level Approval
Define approval workflows for margin updates to ensure collateral movements are properly authorized.
Auto Calculations
System calculates available margin, utilization percentages, and remaining capacity automatically.
Log Printing
Generate margin update logs from the action menu for broker reconciliation and audit trails.
Margin Value Entry
Enter margin values for each broker to record deposits, withdrawals, or collateral adjustments.
Reporting & Analytics
Access detailed margin update reports showing balances by broker, utilization rates, and available capacity.
FINANCIAL TRACKING
Hedging Debit/Credit Entry
Record gains and losses from hedging activities. Ensure accurate accounting of cash flows, margin adjustments, and settlement amounts.
How it works
Debit and credit entries track the financial impact of hedging activities. When positions are marked to market or settled, gains appear as credits and losses as debits. This creates a complete financial record of hedging performance, enabling accurate P&L reporting and reconciliation.
Operating Unit Tracking
Create debit/credit entries by unit with auto-generated sequences for organized financial tracking.
Metal Group Selection
Select metal groups when creating debit/credit entries to categorize financial impact by commodity.
Note Type Classification
Classify entries as Debit Note or Credit Note to properly record gains and losses from hedging.
Amount Entry
Enter transaction amounts for debit or credit entries to capture the financial value of each settlement.
Remarks & Reference
Add remarks and reference IDs to provide context, link to broker statements, or note settlement details.
Quick Entry Creation
Hedging teams can quickly create debit/credit entries for multiple metals and transactions in one session.
Multi-Level Approval
Define approval workflows to ensure financial entries are reviewed and authorized before posting.
Auto Calculations
System calculates running balances, net positions, and cumulative P&L based on debit and credit entries.
Log Printing
Generate printed logs of debit/credit transactions from the action menu for accounting reconciliation.
Reporting & Analytics
Access detailed financial reports showing hedging P&L, cash flow summaries, and transaction histories.
POSITION INITIALIZATION
Hedging Opening Entry
Establish initial hedge positions and carry forward existing exposures. Record opening balances for new hedging periods or system implementations.
How it works
Opening entries establish the first recorded hedge position or bring forward existing positions into a new period or system. This creates a baseline for tracking performance and ensures continuity when migrating from legacy systems or starting a new fiscal year.
Operating Unit Tracking
Create opening entries by unit with auto-generated sequences for structured position initialization.
Metal Group Selection
Select metal groups for opening entries to establish baseline positions by commodity type.
Hedging Type Classification
Classify opening entries as Buy or Sell to properly record the direction of your initial hedge position.
Regional Classification
Categorize opening entries as Overseas or Domestic to maintain separate tracking from day one.
Quantity Entry
Enter opening quantity to establish the volume of metal covered by the initial hedge position.
QC & VC Quantity
Record QC (Quality Coefficient) and VC (Variation Coefficient) quantities for detailed position tracking.
QC & VC Percentage
System auto-calculates QC and VC percentages based on entered quantities for standardized reporting.
LME Rate Entry
Enter LME amounts to automatically calculate opening position values based on market rates.
Quick Entry Creation
Hedging teams can efficiently create opening entries for multiple metals and positions during setup.
Multi-Level Approval
Define approval workflows for opening entries to ensure baseline positions are properly authorized.
Auto Calculations
System calculates opening values, percentages, and position metrics based on entered quantities and rates.
Log Printing
Generate printed opening entry logs from the action menu for audit trails and period-end reconciliation.
Reporting & Analytics
Access detailed opening entry reports showing baseline positions, quantities, and valuations by metal and region.