For investors and producers who participate in the global markets, currency risk is a very real consideration. Currency risk, also known as exchange-rate risk, emerges when foreign currencies unexpectedly appreciate or depreciate against one another. In the event that traditional correlations suddenly become stressed or irrelevant, once sturdy monetary relationships degrade―and currency risk runs rampant.
When it comes to managing risk, successful producers take a no-nonsense approach to hedging. No matter if your business is facing the commodities or manufacturing sectors, limiting exposure to unfortunate trends in asset pricing is a must. Although you can accomplish this task by taking a variety of approaches, futures can be a valuable part… Read more.
Producers – Do you have a structured marketing plan? Having one can be the difference between marketing at levels that you should and letting those opportunities pass.
Producers – Have you ever wondered when you should use futures versus when you should use options? Do you know the optimal times to use one versus the other? Making the right choice can be vital. Make sure you know the difference.
When it comes to managing risk, gold has been a tried-and-true insurance policy for the bulk of human history. For producers, speculators, and buy-and-hold investors, gold is an asset rarely ignored. Perhaps gold’s strongest attribute is its versatility. Aside from being held in the physical form, it is readily tradable via standardized futures and options… Read more.
I’m taking today’s price action with a grain of salt as the Volatility Index was spiking to contract highs and traders are hedging and cross-hedging for every possible US/China trade outcome by the end of the week.
No doubt this was not the kind of return from Easter producers were looking for. But, consider the following and perhaps the glass is half full…
In the business world, an element of risk lingers behind almost every choice we make. Whether buying a parcel of oceanfront land or planting corn instead of wheat, there are no guarantees that our decisions will be good ones. Risk is present in everything we do, and hedging with futures helps put the “worst-case scenario”… Read more.
Are the sellers finally scraping the bottom in the corn market? In a different environment where funds were not already record short, today’s report could have easily sent the market lower, as analysts again underestimated US and World Ending Stocks. So what does the price action after the data release today tell us and what are the next hurdles to clear?
In the business world, “risk” is often the nastiest four-letter word in the book. As a result, finding effective hedging techniques to protect asset values and profitability is a common pursuit for people in a wide variety of industries. Due to their inherent flexibility, futures products are especially useful for hedging. The applications of futures… Read more.