How to read your statements

We are asked very often by our clients how to read their positions statements, so we have compiled the following summary for your information.

Trading statements will be sent to you everyday, usually at around 11 pm in the evening each day. If you have any open positions or any type of financial activity occurs on your account you will receive a statement.

At the end of each month, a monthly summary will be sent to you. This details all activity for the month and is what you should supply your accountant with.

If you require further help with understanding your statements, please contact your advisor. If you have a Managed Account you will be able to log into Portfolio Administration Service which shows a summary of all of this information.

Confirmation

. This section shows us any trading activity that has occurred on your account thorough out the day.
. Trade column is the date the option was traded. These are American style dates.
. The buy/sell quantity with an * denotes the total volume traded for that series.
. Contract description gives us the details of the series that has been traded, including the expiry date.
. Trade price is the price that the option was traded for.
. CC means currency...AD means Aussie dollar.
. Debit/Credit column shows us any funds that have been debited or credited to your account.
. Commission is the amount of brokerage charged.
. Fees are the ACH fees charged per option contract traded.
. Goods & Services tax is paid to the Government.
. Option premium is the gross amount paid or received when transacting any option series.

This example shows that the client has traded two positions on the 6th of April 2006. They sold a total of 20 Santos April 10.50 puts at 1 cent each, resulting in an $89.56 credit after costs. They also bought a total of 20 Santos April 11.00 puts at 3.5 cents each, resulting in a $810.44 debit after costs.

Trade Journal Entries

. This section shows any funds being debited or credited to your options account by the ACH
. Trade is the date the journal entry occurred on
. Journal description is the transaction reason, usually a margin call or excess
. CC is the currency..AD stands for Aussie dollar
. Debit/Credit represents the amount being debited or credited from the ACH... This figure is derived from the margin excess/call plus or minus any cash movements that has occurred in the confirmation section.

This example shows that the client has $3064.41 being deposited tonight. Which is made up of the ACH margin excess of $3785.29 minus $720.88

Offsetting Positions

. This section shows option positions that have been opened and closed and have now matched off.
. Trade column is the date the option was traded
. The buy/sell quantity with an * denotes the total volume traded for that series.
. Contract description gives us the details of the series that has been traded.
. Price is the price that the option was traded for.
. CC means currency...AD means Aussie dollar
. Debit/Credit column shows us the option value in dollars in that currency
. Net memo option premium is the total amount of that option that has been debited or credited to your account.

In this example the client has realised a $1200 loss for their 10.50 put and has realised a $2800 profit for their 11.00 put, grossing a total of $1600 profit for these trades.

Open Positions

. This section shows us any current open option positions that you may have in your account.
. Trade column is the date the option was traded
. The long/short quantity with an * denotes the total open volume for that series. Long means bought, short means sold.
. Contract description gives us the details of the series that has been traded.
.Price is the price that the option was traded for.
. S.P refers to settlement price, this is the price that the options have settled at for the day and also the figure that the ACH bases its margin requirements from.
. Market value refers to the dollar value that you will have to pay or receive to close the position.

In this example the client has four open positions.

Financial Summary