Trading Activities

9 Months Ended

Sep. 30, 2020

4.	Trading Activities:

The Partnership’s objective is to profit from speculative trading in Futures Interests. Therefore, each Trading Advisor for the Partnership will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its trading strategies. As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures.

All of the Futures Interests owned directly by the Partnership are held for trading purposes. All of the Futures Interests owned by the Funds are held for trading purposes. The monthly average number of futures contracts traded directly by the Partnership during the three months ended September 30, 2020 and 2019 was 192 and 227, respectively. The monthly average number of futures contracts traded directly by the Partnership during the nine months ended September 30, 2020 and 2019 was 211 and 178, respectively. The monthly average number of option contracts traded directly by the Partnership during the three months ended September 30, 2020 and 2019 was 17 and 54, respectively. The monthly average number of option contracts traded directly by the Partnership during the nine months ended September 30, 2020 and 2019 was 26 and 22, respectively.

The following tables summarize the gross and net amounts recognized relating to assets and liabilities of the Partnership’s derivatives and their offsetting subject to master netting arrangements or similar agreements as of September 30, 2020 and December 31, 2019, respectively.


September 30, 2020	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial Condition			Amounts Presented in the Statements of Financial Condition		Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
September 30, 2020	Gross Amounts Recognized								Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
Futures	$	154,809		$	(23,309	)	$	131,500	$	-	$	-	$	131,500

Total assets	$	154,809		$	(23,309	)	$	131,500	$	-	$	-	$	131,500


Liabilities
Futures	$	(23,309	)	$	23,309		$	-	$	-	$	-	$	-

Total liabilities	$	(23,309	)	$	23,309		$	-	$	-	$	-	$	-

Net fair value													$	131,500	*


December 31, 2019	Gross Amounts Recognized			Gross Amounts Offset in the Statements of Financial Condition			Amounts Presented in the Statements of Financial Condition			Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
December 31, 2019	Gross Amounts Recognized									Financial Instruments		Cash Collateral Received/ Pledged*		Net Amount
Assets
Futures	$	79,901		$	(79,901	)	$	-		$	-	$	-	$	-

Total assets	$	79,901		$	(79,901	)	$	-		$	-	$	-	$	-


Liabilities
Futures	$	(173,382	)	$	79,901		$	(93,481	)	$	-	$	93,481	$	-

Total liabilities	$	(173,382	)	$	79,901		$	(93,481	)	$	-	$	93,481	$	-

Net fair value														$	-	*

In the event of default by the Partnership, MS&Co., the Partnership’s commodity futures broker and the sole counterparty to the Partnership’s

non-exchange-traded

contracts, as applicable, has the right to offset the Partnership’s obligation with the Partnership’s cash and/or U.S. Treasury bills held by MS&Co., thereby minimizing MS&Co.’s risk of loss. In certain instances, MS&Co. may not post collateral and as such, in the event of default by MS&Co., the Partnership is exposed to the amount shown in the Statements of Financial Condition. In the case of exchange-traded contracts, the Partnership’s exposure to counterparty risk may be reduced since the exchange’s clearinghouse interposes its credit between buyer and seller and the clearinghouse’s guarantee funds may be available in the event of a default. In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.

The following tables indicate the gross fair values of derivative instruments of futures and option contracts, as applicable, held directly by the Partnership as separate assets and liabilities as of September 30, 2020 and December 31, 2019, respectively.


	September 30, 2020
Assets
Futures Contracts
Currencies	$	141,531
Metals		13,278

Total unrealized appreciation on open futures contracts		154,809


Liabilities
Futures Contracts
Currencies		(6,351	)
Metals		(16,958	)

Total unrealized depreciation on open futures contracts		(23,309	)

Net unrealized appreciation on open futures contracts	$	131,500	*

*	This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.


	December 31, 2019
Assets
Futures Contracts
Currencies	$	50,155
Interest Rates Non-U.S.		269
Metals		29,477

Total unrealized appreciation on open futures contracts		79,901


Liabilities
Futures Contracts
Currencies		(169,108	)
Interest Rates U.S.		(2,599	)
Metals		(1,675	)

Total unrealized depreciation on open futures contracts		(173,382	)

Net unrealized depreciation on open futures contracts	$	(93,481	)*


Assets
Options Purchased
Currencies	$	21,313

Total options purchased	$	21,313	**

*	This amount is in “Net unrealized depreciation on open futures contracts” in the Statements of Financial Condition.

**	This amount is in “Options purchased, at fair value” in the Statements of Financial Condition.

The following table indicates the trading gains and losses, by market sector, on derivative instruments traded directly by the Partnership for the three and nine months ended September 30, 2020 and 2019, respectively.


	Three Months Ended September 30,						Nine Months Ended September 30,
Sector	2020			2019			2020			2019
Currencies	$	(85,315	)	$	433,271		$	514,223		$	444,671
Energy		(5,033	)		(1,937	)		(7,210	)		12,368
Indices		3,537			(157,858	)		(123,314	)		(217,002	)
Interest Rates U.S.		3,091			(27,480	)		(23,118	)		(78,540	)
Interest Rates Non-U.S.		2,417			30,755			(10,106	)		28,947
Metals		147,633			(17,179	)		736,965			(17,981	)

Total	$	66,330	***	$	259,572	***	$	1,087,440	***	$	172,463	***

***	This amount is in “Total trading results” in the Statements of Income and Expenses.

CERES TACTICAL GLOBAL L.P. 10-Q