Hedging Strategies of Derivatives Instruments for Commodity Trading Entities

Piotr Giruć

Hedging Strategies of Derivatives Instruments for Commodity Trading Entities

Abstract

Hedging as an outcome of risk management arises to account several questions. Mentioned aspect of size of the hedging is one of them. Latter questioning refers to whether producer of manufacturer are willing to secure entire exposure, when the hedging should start, now or later in the future, what is the vision on market like direction of market, time of interest, magnitude of exposure, what would be the preferred instruments of security, and whether entity is ready to pay for the protection. Many hedgers tend to express their opinion about the future movement of the market, however sometimes with accentuation that they are not qualified to do make their own judgments. Their anxiety and fears can be shattered in a very simple manner that is creation of different scenarios. This piece of work is on applying hedging strategy in the commodity trading.

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Piotr Giruć dr

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Category:: Monographic publication
Type:: rozdział, artykuł w książce - dziele zbiorowym /podręczniku w języku o zasięgu międzynarodowym
Title of issue:: Enterprises in Unstable Economy strony 19 - 34
Language:: English
Publication year:: 2015
Bibliographic description:: Giruć P.: Hedging Strategies of Derivatives Instruments for Commodity Trading Entities// Enterprises in Unstable Economy/ ed. Błażej Prusak Gdańsk: Gdańsk University of Technology, Faculty of Management and Economics, 2015, s.19-34
Verified by:: Gdańsk University of Technology