Ratio Based Contracts

Ratios are used in cocoa trading for pricing. Cocoa derivatives like cocoa butter are traded based on a ratio of the cocoa bean price, since there is no separate futures exchange for cocoa butter, only for cocoa beans.

In Agiblocks, functionality is available to price contracts for commodities which have no own future exchanges. Specifically, the future price of cocoa butter, cocoa powder, cocoa cake and cocoa liquor is determined by multiplying the cocoa bean future price by ratios agreed in a contract.

To use ratio based contracts, the following Master data needs to be configured:

Please see the Ratios section under the Master data section for more information.