Part Six – Futures Contracts

Hedging 101 has discussed using different strategies like prebuy and fixed price products to protect against risk. In this post, we want to talk about another strategy – futures contracts. Come with us as we look at how using a financial hub product plus basis can help you navigate some of the risks of the fuel industry.

Part Five: Risk Policies

Hedging 101 has defined basic terms and given examples of hedging using different tools. In this post, we take a quick detour to talk about the not so glamorous, but necessary, part of hedging – risk policies.

Part Four: Another Example

Our Hedging 101 series has introduced and defined basic terms and given an example of hedging through a prebuy purchase. We continue with another example of hedging using two different tools for fixed price products.

Part Three: Beginning to Hedge

In our Hedging 101 series we defined basic terms, such as “hedge,” and have identified risks a business needs to protect against. We now move into the process of beginning to hedge or protect against those risks.

Part Two: Identifying Risks

Our Hedging 101 series began by defining a “hedge” as a way to protect against risk. With that basic building block in place, we can move on to the next step – identifying what risks a business needs to protect against.

Hedging 101

Hedging 101 is our way of answering some of the questions and comments we have received over 25 years in the industry. We want to do this so that those just starting out, as well as seasoned industry pros can benefit from the series.