Risk Management in Action Futures Real Time

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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 farmer to fix the wheat price. The only downside being that the farmer won’t benefit if the market falls.

The table shows also the fixed price and the current open market price.  In addition, the ‘initial margin’ and ‘margin call’ positions which impact cash flow requirements. See glossary for more.

‘Using futures to fix forward wheat price for Nov-11’

Date Price fixed via futures Price Initial Margin Margin call Total cash flow
8 Sep 2011 160.00 169.00 -12.40 9.00 -3.40
7 Sep 2011 160.00 170.50 -12.40 10.50 -1.90
6 Sep 2011 160.00 169.00 -12.40 9.00 -3.40
5 Sep 2011 160.00 170.20 -12.40 10.20 -2.20
2 Sep 2011 160.00 173.05 -12.40 13.05 .65
1 Sep 2011 160.00 172.75 -12.40 12.75 .35
31 Aug 2011 160.00 174.75 -12.40 14.75 2.35
30 Aug 2011 160.00 174.00 -12.40 14.00 1.60
26 Aug 2011 160.00 171.75 -12.40 11.75 -.65
25 Aug 2011 160.00 169.95 -12.40 9.94 -2.45
24 Aug 2011 160.00 169.00 -12.40 9.00 -3.40
23 Aug 2011 160.00 169.00 -12.40 9.00 -3.40
22 Aug 2011 160.00 166.00 -12.40 6.00 -6.40
19 Aug 2011 160.00 163.55 -12.40 3.55 -8.84
18 Aug 2011 160.00 162.50 -12.40 2.50 -9.90
17 Aug 2011 160.00 164.00 -12.40 4.00 -8.40
16 Aug 2011 160.00 164.50 -12.40 4.50 -7.90
15 Aug 2011 160.00 164.85 -12.40 4.84 -7.55
12 Aug 2011 160.00 163.25 -12.40 3.25 -9.15
11 Aug 2011 160.00 163.25 -12.40 3.25 -9.15
10 Aug 2011 160.00 162.00 -12.40 2.00 -10.40
9 Aug 2011 160.00 160.70 -12.40 .69 -11.70
8 Aug 2011 160.00 157.25 -12.40 -2.75 -15.15
5 Aug 2011 160.00 159.65 -12.40 -.34 -12.75
4 Aug 2011 160.00 161.25 -12.40 1.25 -11.15
3 Aug 2011 160.00 164.00 -12.40 4.00 -8.40
2 Aug 2011 160.00 161.00 -12.40 1.00 -11.40
1 Aug 2011 160.00 163.50 -12.40 3.50 -8.90
29 Jul 2011 160.00 163.65 -12.40 3.65 -8.74
28 Jul 2011 160.00 165.00 -12.40 5.00 -7.40
27 Jul 2011 160.00 163.50 -12.40 3.50 -8.90
26 Jul 2011 160.00 162.50 -12.40 2.50 -9.90
25 Jul 2011 160.00 160.20 -12.40 .19 -12.20
22 Jul 2011 160.00 161.00 -12.40 1.00 -11.40
21 Jul 2011 160.00 163.00 -12.40 3.00 -9.40
20 Jul 2011 160.00 165.65 -12.40 5.65 -6.74
19 Jul 2011 160.00 165.90 -12.40 5.90 -6.49
18 Jul 2011 160.00 162.00 -12.40 2.00 -10.40
15 Jul 2011 160.00 165.00 -12.40 5.00 -7.40
14 Jul 2011 160.00 166.15 -12.40 6.15 -6.24
13 Jul 2011 160.00 167.15 -12.40 7.15 -5.24
12 Jul 2011 160.00 161.50 -12.40 1.50 -10.90
11 Jul 2011 160.00 162.50 -12.40 2.50 -9.90
8 Jul 2011 160.00 164.75 -12.40 4.75 -7.65
7 Jul 2011 160.00 161.65 -12.40 1.65 -10.75
6 Jul 2011 160.00 163.50 -12.40 3.50 -8.90
5 Jul 2011 160.00 165.50 -12.40 5.50 -6.90
4 Jul 2011 160.00 162.50 -12.40 2.50 -9.90
1 Jul 2011 160.00 160.50 -12.40 .50 -11.90
30 Jun 2011 160.00 157.05 -12.40 -2.94 -15.35
29 Jun 2011 160.00 168.50 -12.40 8.50 -3.90
28 Jun 2011 160.00 164.25 -12.40 4.25 -8.15
27 Jun 2011 160.00 158.50 -12.40 -1.50 -13.90
24 Jun 2011 160.00 163.50 -12.40 3.50 -8.90
23 Jun 2011 160.00 164.10 -12.40 4.09 -8.30
22 Jun 2011 160.00 164.00 -12.40 4.00 -8.40
21 Jun 2011 160.00 174.00 -12.40 14.00 1.60
17 Jun 2011 160.00 174.50 -12.40 14.50 2.10
16 Jun 2011 160.00 173.50 -12.40 13.50 1.10
15 Jun 2011 160.00 175.00 -12.40 15.00 2.60
14 Jun 2011 160.00 177.25 -12.40 17.25 4.85
13 Jun 2011 160.00 180.35 -12.40 20.35 7.94
10 Jun 2011 160.00 184.45 -12.40 24.45 12.05
9 Jun 2011 160.00 189.40 -12.40 29.40 17.00
8 Jun 2011 160.00 189.00 -12.40 29.00 16.60
7 Jun 2011 160.00 184.50 -12.40 24.50 12.10
6 Jun 2011 160.00 189.50 -12.40 29.50 17.10
3 Jun 2011 160.00 193.00 -12.40 33.00 20.60
2 Jun 2011 160.00 191.45 -12.40 31.45 19.05
1 Jun 2011 160.00 187.65 -12.40 27.65 15.25
31 May 2011 160.00 189.50 -12.40 29.50 17.10
27 May 2011 160.00 197.00 -12.40 37.00 24.60
26 May 2011 160.00 198.50 -12.40 38.50 26.10
25 May 2011 160.00 193.25 -12.40 33.25 20.85
24 May 2011 160.00 191.35 -12.40 31.35 18.95
23 May 2011 160.00 193.50 -12.40 33.50 21.10
20 May 2011 160.00 194.00 -12.40 34.00 21.60
19 May 2011 160.00 193.50 -12.40 33.50 21.10
18 May 2011 160.00 191.00 -12.40 31.00 18.60
17 May 2011 160.00 180.50 -12.40 20.50 8.10
16 May 2011 160.00 177.75 -12.40 17.75 5.35
13 May 2011 160.00 175.25 -12.40 15.25 2.85
12 May 2011 160.00 172.50 -12.40 12.50 .09
11 May 2011 160.00 175.65 -12.40 15.65 3.25
10 May 2011 160.00 179.00 -12.40 19.00 6.60
9 May 2011 160.00 177.75 -12.40 17.75 5.35
6 May 2011 160.00 168.75 -12.40 8.75 -3.65
5 May 2011 160.00 167.60 -12.40 7.59 -4.80
4 May 2011 160.00 168.15 -12.40 8.15 -4.24
3 May 2011 160.00 172.00 -12.40 12.00 -.40
28 Apr 2011 160.00 169.65 -12.40 9.65 -2.74
27 Apr 2011 160.00 174.60 -12.40 14.60 2.19
26 Apr 2011 160.00 180.00 -12.40 20.00 7.60
21 Apr 2011 160.00 177.40 -12.40 17.40 5.00
20 Apr 2011 160.00 178.25 -12.40 18.25 5.85
19 Apr 2011 160.00 174.10 -12.40 14.10 1.69
18 Apr 2011 160.00 170.75 -12.40 10.75 -1.65
15 Apr 2011 160.00 164.50 -12.40 4.50 -7.90
14 Apr 2011 160.00 165.50 -12.40 5.50 -6.90
13 Apr 2011 160.00 166.90 -12.40 6.90 -5.49
12 Apr 2011 160.00 167.75 -12.40 7.75 -4.65
11 Apr 2011 160.00 170.00 -12.40 10.00 -2.40
8 Apr 2011 160.00 169.50 -12.40 9.50 -2.90
7 Apr 2011 160.00 169.25 -12.40 9.25 -3.15
6 Apr 2011 160.00 171.35 -12.40 11.35 -1.05
5 Apr 2011 160.00 171.05 -12.40 11.05 -1.34
4 Apr 2011 160.00 171.20 -12.40 11.20 -1.20
1 Apr 2011 160.00 167.50 -12.40 7.50 -4.90
31 Mar 2011 160.00 167.55 -12.40 7.55 -4.84
30 Mar 2011 160.00 162.50 -12.40 2.50 -9.90
29 Mar 2011 160.00 161.75 -12.40 1.75 -10.65
28 Mar 2011 160.00 163.00 -12.40 3.00 -9.40
25 Mar 2011 160.00 161.75 -12.40 1.75 -10.65
24 Mar 2011 160.00 158.00 -12.40 -2.00 -14.40
23 Mar 2011 160.00 156.25 -12.40 -3.75 -16.15
22 Mar 2011 160.00 156.00 -12.40 -4.00 -16.40
21 Mar 2011 160.00 159.25 -12.40 -.75 -13.15
18 Mar 2011 160.00 163.30 -12.40 3.30 -9.09
17 Mar 2011 160.00 158.20 -12.40 -1.80 -14.20
16 Mar 2011 160.00 148.60 -12.40 -11.40 -23.80
15 Mar 2011 160.00 145.00 -12.40 -15.00 -27.40
14 Mar 2011 160.00 151.00 -12.40 -9.00 -21.40
11 Mar 2011 160.00 153.50 -12.40 -6.50 -18.90
10 Mar 2011 160.00 154.50 -12.40 -5.50 -17.90
9 Mar 2011 160.00 155.95 -12.40 -4.05 -16.45
8 Mar 2011 160.00 157.50 -12.40 -2.50 -14.90
7 Mar 2011 160.00 161.25 -12.40 1.25 -11.15
4 Mar 2011 160.00 163.00 -12.40 3.00 -9.40
3 Mar 2011 160.00 163.30 -12.40 3.30 -9.09
2 Mar 2011 160.00 161.00 -12.40 1.00 -11.40
1 Mar 2011 160.00 163.00 -12.40 3.00 -9.40
28 Feb 2011 160.00 164.50 -12.40 4.50 -7.90
25 Feb 2011 160.00 166.75 -12.40 6.75 -5.65
24 Feb 2011 160.00 163.75 -12.40 3.75 -8.65
23 Feb 2011 160.00 159.25 -12.40 -.75 -13.15
22 Feb 2011 160.00 160.00 -12.40 .00 -12.40