When you price a swap in either the Single Option page or the Portfolio page, as soon as you enter its swap term SDX Commodities & Energy automatically calculates the fixed rate that would give a zero cost swap (i.e., it is defined to be the same as the calculated floating rate, which SDX Commodities & Energy calculates as the average of the futures over the period of the swap).
This is also true for swap-based instruments, such as the Asian strip.
This value is displayed:
In the Single Option page:
For swaps in the Single Option page in the Traded Rate field.
For Asian, Asian strip, Asian strategy and Asian strip strategy instruments in the Underlying Swap field.
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For the swaps of the underlying instruments click the Expiry Dates & Rates button |
In the Portfolio page in the Underlying Price field.
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For the swaps of the underlying instruments in the Data window click the Expiry Dates & Rates button. |
You can manually change the fixed rate and then recalculate the instrument. This will affect the Present Value of the swap.
Why would you want to be able to change the fixed rate? There are a number of reasons, but the main one is if you agree on a fixed rate on a certain day, but only actually enter the swap on a later day when the floating rate itself has changed. This feature gives you the flexibility to enter the agreed upon fixed rate.