Intermediate
Producer and consumer commodity price hedges
A producer and a consumer can use the same forward agreement for opposite business objectives. The contract fixes a sale price for one and a purchase...
Read articleFOLITIC / FORWARDS TRADING GUIDE
Forwards Trading Guide
Understand forward contracts, interpret quotes and build currency, commodity and portfolio hedges. Follow ten stages from contract basics to advanced valuation, execution and disciplined risk management.
Start with What a forward contract commits you to, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Commodity and Commercial Forwards · All lessons
Commodity and Commercial Forwards
Connect contracted prices with physical supply, delivery quality and changing volumes.
Intermediate
Delivery quality location and basis risk
Two prices for the same named commodity may represent different exposures. Location, quality, timing and delivery terms can leave a gap after hedging.
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Intermediate
Electricity forwards and power purchase agreements
Electricity forwards and power purchase agreements connect financial prices with physical generation and consumption. The shape of delivery is as important as the average price.
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Intermediate
Seasonal volumes and commodity hedge design
Commodity exposure changes with seasons, production and demand. A hedge should follow the quantity and timing that the business can reasonably support.
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