STOCKS & COMMODITIES magazine. The Traders' Magazine

Register or Log In — Traders.com and STOCKS & COMMODITIES magazine

Futures For You  |  JUN 2011

Futures For You

HEDGING PRICE RISK Is there a way to hedge price risk in the futures market without giving up potential for favorable price movement? The goal of a perfect hedge is to eliminate the price risk exposure in any particular market. In doing so, however, the end user also gives up any favorable price movement. Hedging is like any other form of insurance; consumers pay a premium to insurance companies to protect themselves from unfavorable events that will likely never occur. In other words, it isn’t possible to enjoy the benefits of protection without giving something up. But that doesn’t mean that the hedge itself can’t be strategic.

by Carley Garner

Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99

NOT A SUBSCRIBER?

To continue reading, sign-up for trial access to Traders.com and the S&C Archive37,000 pages of trading ideas!




After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.



DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2024 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.