Price Risk
A Checklist Before a New Pricing Tool
Before you add a pricing contract or a futures account, write what it locks, what it costs, and who can explain the fill.
Tag
hedging
4 posts tagged "hedging".
Price Risk
Margin Calls in Plain Language
A margin call asks you to add funds when a futures position moves against you. It is not a bill for the grain.
Price Risk
A Hedge Is Not a Price Forecast
Hedging locks in a relationship to a futures price. It does not predict where the market will go next.
Price Risk
Hedging Basics for a Small Grain Producer
How a short hedge with futures can protect a grain price, with a worked example, the role of basis, margin needs and the limits of hedging.