Market rates are used throughout SDX Commodities & Energy. When you open a page at the beginning of a session, the system uses the default market rates for that particular page. Depending on your settings and whether or not you have your own rates feed, these are SuperDerivatives’ real-time market rates or your own rates saved into the database. In some places this use is transparent, such as in the Correlation page, but in other pages you can not only access the market rates used for each commodity in that page (via its term structure) but you can also change them as required.
When you open a page at the beginning of a session, SDX Commodities & Energy uses the default market rates for that particular page. In the:
Pricing page (Single Option page or the Portfolio page) by default its term structure contains the currency pair's real-time market rates.
These rates are used:
To automatically enter market rates for options in this currency pair.
To price options in the current currency pair (unless you manually edit the rates in the pricing page itself).
To create the risk charts for the current option.
Volatility Surface, by default its term structure contains the currency pair's real-time market rates.
Its term structure is used to create the volatility surface for options in this commodity.
Risk Charts, by default its term structure is the same as that used in the pricing page from which the risk charts were generated.
These rates are used to create the risk charts for the current commodity in the pricing page.
Risk Matrix, by default its term structure is the same as that used in the Portfolio page from which the Risk Matrix was generated.
This term structure is used to calculate the position of the selected portfolio(s).
You can then work with these market rates in the relevant term structure page. Although this is generally on a per-session basis, for the:
Pricing pages, you can also change the market rates used on a per-option basis.
How? You do this in the pricing page itself by manually editing the relevant fields, after the system has entered the market rates for the selected option from the commodity's Term Structure page. This edited information is used to price this option only. That is, when you next enter an option in this commodity in this page, the market rates are automatically entered from the Term Structure page.
Volatility Surface page, any changes made on the page itself are automatically made in its Term Structure page as well, and vice versa.