How enterprises use futures (derivatives) to avoid operation risks?
！！Ji Feng from Wanxiang Hartree
2019-10-25 11:57:16
Ji Feng from Wanxiang Hartree delivers his report of How enterprises use futures (derivatives) to avoid operation risks?
The report is divided into and six aspects.
1. The derivatives market trading model could be divided into floor trading and OTC trading modes, including forwards, futures, options, swaps.
2. Introduction of the development, function of the futures market.
3. SWAP trading includes customer transaction, contract swap link, and delivery liquidation. Mr. Ji also introduces characteristics of swap trading.
4. The role of the option market is to use of options for hedging. The profit in options could make up for the loss of the spot market during the downtrend. No loss will occur as the value of the options is zero during the uptrend.
5. How polyester plants participate in hedging for PX-naphtha spread, PTA-PX spread, MEG and polyester margins.
6. Mr. Ji talked about that fluctuating range of processing fee widens during the capacity expansion peak. Domestic futures varieties are continuously listed, and enterprises among are not able to avoid them. Market participants should pay attention to the futures market to reduce operational risk
The report is divided into and six aspects.
1. The derivatives market trading model could be divided into floor trading and OTC trading modes, including forwards, futures, options, swaps.
2. Introduction of the development, function of the futures market.
3. SWAP trading includes customer transaction, contract swap link, and delivery liquidation. Mr. Ji also introduces characteristics of swap trading.
4. The role of the option market is to use of options for hedging. The profit in options could make up for the loss of the spot market during the downtrend. No loss will occur as the value of the options is zero during the uptrend.
5. How polyester plants participate in hedging for PX-naphtha spread, PTA-PX spread, MEG and polyester margins.
6. Mr. Ji talked about that fluctuating range of processing fee widens during the capacity expansion peak. Domestic futures varieties are continuously listed, and enterprises among are not able to avoid them. Market participants should pay attention to the futures market to reduce operational risk
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