Despite its relatively short history, the energy futures contract has become an essential part of the modern financial system, thanks to its efficiency in controlling volatility in the price of ...
Take a look at some basic examples of hedging in the futures market, as well as the return prospects and risks.
A futures contract legally obligates an investor to buy or sell a specific security or commodity at a predetermined price and time, and it’s facilitated on the futures exchange. When the future ...
Scholes for options to futures spot pricing. Understand pricing mechanisms for better financial decision-making.
Brazil’s weather caused some excitement in the soybean market this week. One day forecasts showed no rain, and the next it did. Until late January, farmers should expect South America’s weather ...
For retirees (or soon-to-be retirees), futures contracts can offer an additional avenue for diversification and hedging opportunities, helping to manage market volatility. However, there are a few ...
This is a one time “hoop” hedgers using futures must do that selling an HTA does not require. Including a hedge line with a bank to finance the hedge account is also a good idea. I will discuss this ...