Step 1: In the Position Name text box, type in the position name you are assigning the FRA. This is a required command.
Step 2: In the Comment text box add any additional notes about the transaction.
Step 3: In the Counterparty menu, type in the Counterparty with whom you are entering the FRA. You can also click from the list if a counterparty entry already exists.
Step 4: In the Seniority Level menu, click the appropriate Seniority Level, or payment order of the FRA.
Step 5: In the Notional Amount text box, type the predetermined dollar amount of the FRA to be exchanged, then click the corresponding currency type from the adjacent currency menu. This is a required command.
Step 6: In the Settlement Date menu, click through the online calendar to set the settlement date or the date the notional amount of the FRA is exchanged. This is a required command.
Step 7: In the Strike Rate menu, type the specified interest rate in the FRA. The text box automatically extends your entry to six decimal places.
Step 8: In the Reference Index menu, click the appropriate index. This is a required command.
Step 9: In the Compounding Frequency menu, click the appropriate frequency applied to the payments. This is a required command.
Step 10: In the Daycount Convention menu, click the appropriate convention used in the payment schedule. The available conventions and corresponding currencies are: Actual/365 HKD, MYR, THB, SGD Actual/360 AUD, CAD, NLG, EUR, FRF, DEM, ITL, PHP, ESP, SEK,CHF, GBP, JPY, USD. This is a required command.
Step 11: In the Discount Curve menu, click the appropriate curve, selecting interbank or treasury for the desired currency. This is a required command.
Step 12: In the Long/Short menu, click to define whether you are a long or short on the contract. This is a required command.