Managing Risk using Futures
What are futures?
Futures markets are derivative products. For grain they should be considered as the forward market, but in a formal and regulated environment....
Navigating Your Way Around a Futures Price Screen
Guide to LIFFE feed wheat futures price reporting
The UK LIFFE feed wheat futures market is operated by NYSE Euronext. Via the website (www.euronext.com). Users...
Managing Risk using Options
Hedging Using Options
The easiest way to consider an option is as price insurance.
A call option offers protection against a rising market. A pig producer can...
Glossary of Terminology
At-the-money option: An option with a strike price equal to the futures price at the time of purchase. For example, for a call option, if...
Risk Management in Action Futures Real Time
Futures Real Time
This graph shows the performance of a futures hedge against the current open market price for wheat. The future purchase allows the...
Risk Management in Action
Options Real Time
This graph shows the performance of a call option, based on current market values. This shows how a call option can be...
What is Hedging?
Hedging is a process that a business can use to manage volatile commodity prices and is often referred to as Price Risk Management.
Businesses involved...
Navigating Your Way Around a Futures Price Screen
Guide to LIFFE feed wheat futures price reporting
The UK LIFFE feed wheat futures market is operated by NYSE Euronext. Via the website (www.euronext.com). Users...
