Hedging efficiency: a futures exchange management approach

Article Abstract:

A concept of overall risk reduction and a measure of hedging efficiency focusing on the hedging service of the futures contract may be effective for futures exchange management. The measure takes account of a futures cash price risk, trading risk such as basis risk, market depth risk and commission costs, as they are all vital to the success of hedging service of the futures exchange. It also compares the competitive strength of alternative futures contracts.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

The motivation for hedging revisited

Article Abstract:

Research is presented that develops a model illustrating the motivation to hedge is focused on the commercial environment, reflected by contract relationships with other firms. Reference is made to the use of futures markets to provide beneficial contracting arrangements, enhancing inter-company relationships.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code:

Reevaluating hedging performance

Article Abstract:

Econometric models, which are used to examine feasibility of hedging strategies, are presented.

User Contributions:

Comment about this article or add new information about this topic:

Comment:  (50-4000 characters)

Name:

E-mail:

Security Code: