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Among the many advantages of futures trading is its utility in regard to risk management. Futures give market participants the ability to directly increase or decrease exposure to almost any asset class. This is possible because of three primary futures market characteristics: standardization, liquidity, and volatility. Given these benefits, traders may proactively limit risk by… Read more.
Unlike other financial instruments, futures contracts allow traders to benefit from rising or falling asset prices. You’re not limited to the buy side of the market, which means that you can also generate profits from the sell side. By using bull spreads, bear spreads, and associated strategies, you can secure market share by being either… Read more.
In the real world, as well as in the markets, managing risk is a critical part of avoiding financial catastrophe. From buying a life insurance policy to diversifying your portfolio, actively addressing risk can save countless dollars and provide peace of mind.
No matter what your goals and resources are, having a structured approach to market entry, exit, and risk management is a necessity. Without this type of plan, the vast majority of futures trading strategies will fall short of their potential. In reality, active traders have thousands of strategies at their disposal. The best ones are… Read more.
Cross commodity hedging is a popular way of managing risk for producers and speculators alike. Also referred to as cross hedging, this financial strategy involves opening positions in related markets to mitigate systemic exposure. While sophistication levels vary wildly and depend upon a variety of inputs, this methodology is a viable way of protecting wealth… Read more.
Unfortunately, risk is an unavoidable part of life. Whether you’re buying a house or jumping out of an airplane, you assume some degree of risk. In the world of finance, active hedging is like a skydiver’s parachute ― when properly used, catastrophe may be routinely averted. Let’s take a look at three ways of making… Read more.
Futures trading is often characterized as being similar to playing poker or betting horses for a living. The possibility of financial loss brings with it negative connotations ― the high wash-out rate for market newbies only fuels the fire. When it comes right down to it, many people view futures as nothing more than a… Read more.
The product market has turned, and the live hog prices are following them. Below is how the weekly product market changed for the week ending 8/18/ 17 *Product Price Monday 8/14 Price Friday 8/18 Net Change Loins 82.71 81.80 (.91) Butts 92.05 93.12 1.07 Picnic 58.98 54.54 (4.44) Rib 128.35… Read more.
Weekly Cattle Commentary 8/11/2017This week’s cash prices saw the bulk of cattle trading 114.50 to 116, 2 to 3$ lower than last week’s trades. Dressed sales were 183 to 185$. Basis was 5$ over the August Live board. Estimated weekly slaughter was 641K head, 62K larger than the same week last year. Box prices in… Read more.
The product market has turned and the live hog prices are following them. Below is how the weekly product market changed for the week ending 8/4/ 17 *Product Price Monday 8/7 Price Friday 8/11 Net Change Loins 85.94 82.78 -3.16 Butts 90.24 90.67 .43 Picnic 62.39 57.66 -4.73 Rib 118.13… Read more.