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Commercial Hedging
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Commercial Hedging involves reducing the exposure of a business to it’s financial price risk. These risks may be peripheral to a firm’s core business but likely have a significant impact on costs and/or revenues and thus profitability.
The agricultural and banking communities have engaged in commercial hedging for years. Farmers and their customers i.e. grain silos or meat packinghouses have been a primary user of commercial hedging techniques. Price risk in the agricultural community can be extreme given the risks of agricultural production. Likewise, financial institutions with significant currency risks are susceptible to economic and political events and many actively mitigate their risks through future currency purchases and sales.
Almost any business has price risks that can be hedged. Examples include:
- Institutional Investors and Corporations with Exposure to a Declining Stock Market
- Energy Consumers, Producers and Suppliers
- Issuers and Dealers of Commercial Notes
- Municipalities with Pending Bond Obligations
- Holders of Cash and Financial Instruments
Hi-Tech Futures Trading can offer you the ability to execute your hedging transactions. Our services include:
- Excution and Monitoring of your Hedge Transaction
We can assist in opening a hedge account, define margin requirements, as well as execute your pre-planned hedged positions. These services are provided at our standard brokerage rates
- Hedge Design and Execution
Our experts are available for a nominal monthly fee to design, execute and manage your hedge program. Services include hedge designs that offer different hedge options, projection of costs and benefits, and position sizing. These designs, upon client approval are then executed in the marketplace and monitored for performance.
We can help answer the three primary questions faced by a company with exposure to price risks.
- What is the Hedging Objective (Needs) of the Firm
- What is the Firm’s Exposure to Price Risk?
- What are the various types of instruments available and how can they best be used
to mitigate and control financial risks?
For More Information on Price Risks and Commercial Hedging,
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For More Information about Hedging Strategies, simply fill out and submit the form below.
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Thank you for contacting Hi-Tech Futures, Inc. We are pleased that you
have decided to learn more about all we have to offer futures and options
traders. If you would like an immediate answer to your questions you may
call us Toll Free 1-800-570-4062. If not, please feel
free to fill in the form below so that one of our Account Executives can
get back to you at your convenience. All information will remain strictly
confidential and will NOT be redistributed.
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