Futures and Options
WHAT IS IT? Futures and options have been used by physical buyers and sellers of grains for centuries in order to manage price risk with many businesses using them as part of their strategy. When understood they provide an effective tool, particularly when managing ‘basis’, a factor which is also explained in this course.
Duration: 1 day
The one day course will introduce grain futures markets, how they work, the relationship with physical prices and how they are used within a strategy.
- Margin calls, hedging, why hedge and how;
- Physical contracts – selling spot, forward, min price etc;
- Options markets and their use in managing volatility;
- Trading strategies, placing orders, timing, hedging vs speculation;
- Implementing a risk management strategy;
- Placing an order with a futures broker;
- Basis – Knowing your basis will allow you to understand market signals and make better informed decisions.