Take a look at some basic examples of hedging in the futures market, as well as the return prospects and risks.

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

Portfolio hedging has relied on the same rules for decades, but as technology, geopolitics and the nature of trading undergo rapid change, hedging needs an update.

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...

Though pre-hedging has been lauded by some across the markets as a key way to improve market efficiency, the buy-side continue to have reservations as to its empirical use. The mechanism allows ...