Posts

Part Eight: Conclusion & an Introduction

In our Hedging 101 series, our goals were to provide information about hedging in a way that “Kept Things Simple”, while also providing the building blocks to understand basic hedging concepts in action. This post reviews some terms and concepts we’ve covered in this series, and gives a brief overview of where we want to go next with hedging!

Part Seven: Financial Swaps

Hedging 101 has discussed many different strategies to protect against risk, including prebuy, fixed price products, and futures contracts. In this post, we want to look at how financial swaps can reduce risk when a fuel distributor is using a financial hub product.

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 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.