Commissions
In addition to knowing the technique by which commissions will be charged, you
also need to know how the commissions will be calculated. Some commissions
are a flat fee based on the number and kind of instruments you buy or sell.
However, commissions can be more complicated than a simple flat fee.
Aspen enables you to calculate commissions based on four instrument categories
and two calculation techniques. To define your commissions schedule, select Commissions from the book menu. This displays the book
The Commissions dialog box contains four sections:
Futures
Stocks
Other
Selection
| Meaning
|
No Commission
| Commission is not calculated.
|
Front Loaded
| Pay up front.
|
Back Loaded
| Pay after service.
|
Half & Half
| Pay half up front and half and half after service.
|
Calc. Type Determines whether the commission on options is calculated using a flat fee, or using a formula that you write. This field is a toggle. To choose flat fee commission calculation, leave the toggle at its default, Per Contract. To use a formula, click on the field to change it to User Formula. This prepares the field containing the commission rate to hold the formula you enter. To enter the formula, click on the field and type the formula using Aspen
s formula language. When youre finished, press b.
Calculation If you choose the Per Contract Calculation Type, this field contains the flat fee paid for options commissions. This fee is multiplied by the quantity of instruments to calculate the round-trip commission. If you choose the User Formula Calculation Type, this field contains an expression, written in Aspen
s formula language, for calculating options commissions. For example, the formula,