Price Risk Management and Hedging

How well do you forecast the margins in your business? Commodity price risk is inherent in manufacturing environments. If your business relies on commodity inputs, you’re already aware of how volatile markets can be.

  • Should you be hedging?
  • Are your hedges effective?
  • Are your purchase orders pricing under different terms than your sales contracts?
  • Do you offer annual fixed price agreements to your customers?

Managing price risk can be done in both the physical and financial commodity markets. It doesn’t have to be overly complicated. Hedging isn’t for everyone but every business should evaluate the potential costs & benefits. Our customized consulting process and solutions let you decide the risk tolerance of your business and gives you the clarity to see where natural hedging occurs and where price risk remains. With the remaining risk identified we can provide advice and solutions to lock your margins, either physically or financially. Don’t be a victim of markets swings and stop trying to time the market.

Contact Us to learn more.

About Nexidus Commodities

Nexidus Commodities provides commodity hedging, risk management, and analytical services to a large range of industries. Our mission is to provide clarity, direction, and strategy to better manage commodity price volatility that exists on an ongoing basis. We review our clients existing hedging strategies to identify gaps and improvements. Nexidus offers a full range of services including one-time consultations, analytics and reporting, risk management planning, as well as a fully outsourced hedging solution that executes on behalf of our client’s requirements and goals. www.nexidus.net

Disclaimer:

This communication is not a solicitation to buy or sell derivative instruments. The trading of derivatives such as futures, options, and swaps may not be suitable for all investors. Derivative trading involves substantial risk of loss, and you should fully understand those risks prior to trading. Past financial results are not necessarily indicative of future performance. Nexidus Commodities, LLC is a member of the National Futures Association (NFA) and registered with the Commodity Futures Trading Commission (CFTC) as a Commodity Trading Advisor. Certain Nexidus services are available only to individuals or firms who qualify under CFTC rules as a ‘Qualified Eligible Participant’ (QEP) and who have been accepted as customers of Nexidus.