Commodity prices are often volatile. Post-Covid, driven by global liquidity abundance, a section of the market expects a commodity supercycle while some others anticipate a crash in prices whenever markets correct.
Whether you have exposure to base metals or crude derivatives or agricultural products, it is important to protect yourself from risk. Companies which have commodity as raw material needs to be protected else the margin can be wiped out with an increase in prices.
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Interest Rates services that we provide
Commodity hedge set up
To hedge commodity risk, the set for hedging is needed. We do end-to-end set up of commodity risk management and hedging desk. Once the set-up is done, you can hedge your risks inappropriate exchange or in the OTC market
Should you hedge your commodity risk
We evaluate in detail the price movements which impacts your company and the price movements in the market traded instrument. We evaluate basis risk, correlation risk and appropriately advise how to hedge.
Basis risk evaluation is one of the most important criteria for the evaluation of commodity risk hedging. We have the deep Quant ability for that analysis.
Commodity Risk management Policy
We help you prepare a commodity risk management policy. Commodity RMP is a comprehensive document that covers the exposure, objective, hedge rules, allowed instruments, limits, process, MIS formats, and documentation process. The policy is also an RBI requirement if you want to hedge. The policy to be customized for every company with specific requirements.
Commodity Hedge Strategy making
We will make a hedging strategy for you that is geared to protect your risk and meet the objective. Strategy broadly covers the time of hedge, the quantum of the hedge, an instrument of hedge, and cost of the hedge.
Training and Capability building related to commodity hedging
We do conduct commodity hedging and risk management training for our clients and executives. It involves explanation of how hedging helps, how pricing is done, option structures and many more details on commodity hedging.
Using option based commodity hedging
Options help you to mitigate risk while allowing you to benefit from the favorable moves. Often in commodity risk management, options are extremely useful. We provide a calculator, structures, pricing, strategy, and monitoring of option-based hedging. Option structures are also used to reduce the cost of options.
Daily review and recommendations
We review your exposures and hedges every day and evaluate alternative strategies which would be useful. We select the right strategy and recommend the same in a timely manner. During market hours our team will come back to you promptly whenever there is a market movement.
Hedge Execution support
We support in hedge execution as well. We help you strategize for getting the right price and for the smooth execution of hedges. We use calculators, our understanding of bid-offer, and other nuances of the market to extract the right price for you.
Monitoring and Performance Management
We monitor your overall exposure, past deals, settlement details, etc to ensure that policy adheres, and strategy is aligned for achieving the objective. We remain focused on objectives like achieving cost reduction, profitability enhancement, or volatility elimination.
We put our clients first. We measure our successes based on how well each of our clients has achieved their Treasury Goals.
Our Events are spread across the year. Our focus is to have workshops and knowledge sessions that increase the effectiveness both of an individual and an organization. The sessions are structured on practical relevant operations aspects. We also have sessions on updated, current, relevant market movements and practices, regulations, knowledge, and technology. All training sessions are free for our advisory retainer clients. Clients can register by sending us an email to [email protected]. Few of our training sessions are complimentary for everyone. Explore what we have for you.
USDINR Option Strategies for Export & Import Hedging–Part III
Date:- 28th October 2021, Thursday
Time:- 12:00pm-1:30pm IST
Fee:- INR 9,000
Understanding option pricing and volatility surface. The implication of risk reversals and strangles. Understanding inputs to Black Scholes formulae and practical implications. Understanding Greeks like Delta, Gamma and their practical use while hedging.
+ USDINR Outlook and Factors driving the same.