Dealing with the unexpected does pay off
‘Hasn’t happened so far’ does not mean it ‘will never happen’. Extreme, low probability events do occur and the size and scope of the contingency plans put in place to counter them will reflect how smoothly you and your firm will fare through difficult times.
Before determining what a hedging strategy has to look like, one has to account for the nature, degree and extent of his/her firm’s exposure. S-Trader determines its clients’ specific risk profile on a case-by-case basis, through a carefully directed consultative approach that covers a checklist of potential risks.
Today’s financial markets offer remarkable sophistication in terms of available investment and hedging vehicles. This gives hedgers unmatched flexibility in choosing a cost efficient solution, provided they select the most appropriate instruments to protect against risks. S-Trader’s advanced knowledge of financial and commodity derivative products is extremely valuable when making such selections.
Last but not least, our market analysis approach provides valuable insight in determining the most appropriate hedging strategy. We identify the probable trend direction and one or two alternative scenarios and then help you decide the appropriateness of hedging through forward or option based derivatives.
Typically, you will find that our hedging solutions function like an insurance policy: a hedge is implemented when the market appears to be working against your interests and is removed when price trends work in your favor.