Course 14 of 20 · Coffee Desk Academy

Price-to-Be-Fixed Contracts & Fixations

Stage D, Fixation and structured price protection. Level 7 of 10.

Operating price-to-be-fixed business end to end: fixation orders and deadlines, partial fixings, unfixed balances, and the transfer of futures positions between buyer and seller.

122 chapters · 11 modules · every chapter one 8 to 10 minute explainer · builds on: Course 05, Course 10, Course 11, Course 12

Enrol or enquire See the 122 chapters
How a chapter is delivered

One chapter is one idea taken to the point of use

Each chapter covers one idea to the point where you can use it, and comes two ways: a narrated explainer, and a deep dive audio discussion of around thirty minutes that works the same material at depth.

Self-paced throughout, and the same chapters can be taught as a cohort. Chapters run in order: each one assumes only what the chapters before it taught, and capability belonging to a later course is named and deferred rather than half-covered.

Curriculum

11 modules · 122 chapters

Open any module for its full chapter list, in teaching order.

M0 An Agreed Differential and a Price Nobody Has Chosen Yet Ch 1-11
  1. The Coffee Sale That Leaves Its Exchange Price Open
  2. Why a Roaster and a Merchant Both Want the Price Left Open
  3. Price Equals an Exchange Month Plus or Minus the Differential
  4. The Drafted Coffee Contract This Material Starts From
  5. The Differential a Fixation Must Leave Untouched
  6. The Two Hedge Books This Material Operates On
  7. Three Seats Around One Unpriced Coffee Lot
  8. An Unfixed Balance Is an Open Position, Not Paperwork
  9. One Lot, One Counterparty, One Pricing Month
  10. Who Protects, Programmes and Stresses an Unfixed Balance
  11. The Four Facts Every Fixation Entry Must Carry
M1 Who Holds the Right to Fix, and Who Granted It Ch 12-22
  1. The Right to Choose the Moment Sits With One Party
  2. Buyer's Call: The Fixation Right Held by the Buyer
  3. Seller's Call: The Fixation Right Held by the Seller
  4. The Final Fixation Date Is a Protection Held by the Grantor
  5. Reading an Unfamiliar Pricing Clause Cold for Who Fixes
  6. The Fixation Register Kept Beside the Contract File
  7. Phrases That Claim the Fixation Right for the Wrong Party
  8. Pushing the Exchange Price to Both Extremes
  9. A Right Held by the Buyer Is Not a Right to Any Price
  10. Calling a Fixation Clause Mutual Hides the Exchange
  11. The Direction Pass Run Over a File of Pricing Clauses
M2 The Pricing Terms a Fixation Clause Must Settle Ch 23-33
  1. Naming the Exchange Contract Month the Price Reads
  2. Which Exchange Contract the Price Belongs To
  3. The Price Source Inside the Trading Day
  4. The Window Inside Which a Fixation May Be Called
  5. The Smallest Quantity a Single Fixation May Cover
  6. The Notice a Fixation Instruction Must Give
  7. Who Executes, and Whose Account the Trade Lands In
  8. The Fee or Spread Charged for Executing a Fixation
  9. Fixing Against a Month That Is About to Expire
  10. Pricing Terms Written Under Two Coffee Trade Rule Sets
  11. A Pricing Clause Built From Scratch and Read Back
M3 The Unfixed Balance on the Position Report Ch 34-44
  1. Measuring the Coffee Whose Price Is Still Open
  2. An Unfixed Purchase Leaves the Merchant Short the Exchange
  3. An Unfixed Sale Leaves the Merchant Long the Exchange
  4. Netting Unpriced Purchases Against Unpriced Sales
  5. Why an Unfixed Balance Goes Missing From the Risk Report
  6. The Priced Physical, the Hedge and the Open Balance Side by Side
  7. The Month Buckets an Unfixed Balance Must Split Into
  8. Unpriced Quantity Against Coffee Still at Origin
  9. The Daily Movement in an Unfixed Balance
  10. Reporting the Open Balance to the Desk Head and to Risk
  11. The Open Balance Carried Into the Combined Position View
M4 Placing and Executing a Fixation Order Ch 45-55
  1. The Instruction That Turns Open Coffee Into a Price
  2. A Fixation at the Market Against One at a Stated Level
  3. A Resting Order Left to Work Over Several Sessions
  4. Partial Execution and the Quantity That Did Not Price
  5. Cancelling or Changing an Instruction Already Placed
  6. Confirming a Fixation to the Counterparty in Writing
  7. The Timing Gap Between Execution and Confirmation
  8. An Instruction Naming the Wrong Contract Month
  9. An Instruction Arriving After the Final Date
  10. Who May Give a Fixation Instruction, and How That Is Known
  11. A Day of Instructions Worked Across Four Coffee Contracts
M5 Partial Fixations and the Running Balance Ch 56-66
  1. Pricing Part of a Contract and Leaving the Rest Open
  2. The Weighted Average a Part-Fixed Contract Carries
  3. The Open Remainder After Each Instalment
  4. Pricing Fast Early Against Holding Back for the Deadline
  5. The Remainder Too Small to Price in One Lot
  6. A Part-Fixed Contract Meeting a Part Shipment
  7. Invoicing a Shipment Against a Contract Not Fully Priced
  8. The Pricing History That Survives a Change of Trader
  9. Two Books Disagreeing on the Open Remainder
  10. Averaging Across Contracts Rather Than Within One
  11. One Coffee Sale Priced in Five Instalments
M6 The Final Fixation Date and What Happens When It Passes Ch 67-77
  1. The Deadline as the Grantor's Only Hard Boundary
  2. Counting Backwards From the Named Month's Last Trading Day
  3. The Reminder Sequence Before a Deadline Falls
  4. Automatic Pricing at a Stated Level on Lapse
  5. The Grantor's Right to Price the Balance Itself
  6. Extending a Deadline, and What the Extension Costs
  7. A Deadline Missed Because Nobody Watched the Calendar
  8. The Choice at the Deadline: Price It, Roll It or Let It Lapse
  9. When the Counterparty Will Neither Price Nor Agree
  10. The Deadline Calendar Kept Across the Whole Book
  11. Three Lapsed Rights and Three Different Outcomes
M7 The Futures Position That Changes Hands Ch 78-89
  1. A Fixation Is a Trade in the Exchange Contract
  2. Why the Hedge Must Move When the Price Is Chosen
  3. Deriving Which Side Moves Rather Than Remembering It
  4. A Buyer's Fixation Against a Merchant Holding a Short
  5. A Seller's Fixation Against a Merchant Holding a Long
  6. The Side That Moves Does Not Depend on Who Is Buying
  7. When Neither Party Was Hedged, Nothing Changes Hands
  8. The Transfer Level and the Fixation Level Are One Number
  9. How a Transferred Position Reaches the Other Account
  10. Margin Travels With the Position, and So Does the Cash
  11. A Transfer Booked Backwards, and Where It Surfaces
  12. One Fixation Followed Through Both Books at Once
M8 Moving the Pricing Month, and Fixing on Two Exchanges Ch 90-100
  1. The Pricing Month Is a Contract Term, Not a Hedge Choice
  2. Switching Unpriced Quantity to a Later Month by Agreement
  3. Who Pays the Carry on a Switch, and Why It Is Argued
  4. A Switch Requested Because Shipment Slipped
  5. Fixing Against the Arabica Contract Traded in New York
  6. Fixing Against the Robusta Contract Traded in London
  7. One Coffee Contract Priced Against Two Exchanges
  8. A Robusta Lot Priced Against the Arabica Contract
  9. Specialty Lots Sold With No Exchange Leg at All
  10. A Final Date Set by the Exchange and a Shipment Set Elsewhere
  11. The Month and Contract Map Kept Across the Open Book
M9 Running the Fixation Book With Many Counterparties Ch 101-111
  1. Many Rights, One Desk, One Morning
  2. The Daily Fixation Routine From Open to Close
  3. Separating the Desk's Own Calls From the Counterparty's
  4. Executing a Counterparty's Instruction Without Advising It
  5. Many Fixations Against One Hedge Book
  6. The Counterparty That Prices Everything at Once
  7. Chasing an Instruction From a Counterparty Gone Quiet
  8. An Unpriced Contract Assigned to a Different Counterparty
  9. The Monthly Reconciliation of Fixations to Invoices
  10. Handing the Fixation Book Between Desk and Operations
  11. A Week on a Book of Twenty Unpriced Contracts
M10 Two Fixation Books Worked End to End, and the Limits Ch 112-122
  1. Case One: A Brazilian Purchase Sold Unpriced to a Roaster
  2. Case One: The Opening Book Before Any Instruction
  3. Case One: The Roaster Prices in Three Instalments
  4. Case One: The Last Remainder Meets the Lapse Clause
  5. Case Two: A Vietnamese Robusta Purchase Priced by the Exporter
  6. Case Two: The Exporter Prices Late and the Month Is Switched
  7. The Two Coffee Books Compared Side by Side
  8. The Same Two Deals Written at a Fixed Price Instead
  9. The Direction Read-Back Over Both Completed Books
  10. The Three Silences in a Complete Fixation Record
  11. Where a Fully Priced Coffee Contract Goes Next

The brochure gives each of these 122 chapters a paragraph on what it covers and what you can do once you have worked through it.

This is course 14 of twenty

It stands alone, and it is also the entry point to the Coffee Desk Academy pathway.

Enrol or enquire See the whole pathway