In the Open and Close Caps/Floors panel, you can manually book an open and close trade for a cap and floor. Cap/floor positions can be long or short. If a cap/floor is bought, it is established as a long position. A written cap/floor is treated as a short position.
This article assumes you are familiar with the entity and security level elections that have been made for processing a cap/floor. For example, you must enter a value for the Net Cap Floor field. If you set this field to Yes, the system nets the buy and sell of a cap/floor security on the same entity into a single position. If you set this field to No, the system treats the buy and sell of a cap/floor security on the same entity as two separate positions. You can access this field using the Add/Change Entity and Add/Change Master Fund Setup panels. Also, if the Primary Amortization/Accretion Rule field is not set to Straight Line, Straight Line Actual, or None, you must set up the Amortization/Accretion Rule at the processing security type level. You can access this field using the Add/Change Amortization/Accretion Rules panel.
To manually book an open/close trade for a cap/floor: 1. From
- From any Eagle window, click the Eagle Navigator button to access the Eagle Navigator.
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- Enter Book Trade in the Start Search text box.
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- Click the Book Trade (Accounting Center) link to access the Book Trade tool.
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- You see the Query window as the default.
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- Complete the options in the Query window and click Start Search.
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- Select the row with the security you want to trade.
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- Click Open or Close, and click Buy (Open Long), Sell (Close Long), Write (Open Short), or Buy to Cover (Close Short).
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- You see the Open and Close Caps/Floors panel.
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- Complete the options on the Open and Close Caps/Floors panel.
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- Click Submit.
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- Once the trade is booked, it follows all core accounting processes.