Hedging

Whether you are looking to lock in margins (oil refiner), a producer hedger (oil production, gold miner) or a consumer hedger (jet fuel for airlines). Learn how CACT's chart patterns and price projection tools can be applied to your hedging decisions and strategies.

Depending on whether a market is in congestion or trending this can affect the hedging attitude of whether to delay/advance hedging or increase/decrease the percentage of hedging volumes of the variable(s) that have the most impact on your company's bottom line.

Use predicted highs and lows in different time frames (weekly, monthly, quarterly, and yearly) to project targets of where prices may be heading. Use these techniques to dynamically manage existing hedging strategies or modify according to prevailing market conditions.

Understand the techniques that were integral in the call by the President of CACT David Patterson to project a price target of $144 in crude oil when the prevailing market was in the $30's. The call was reinforced when the yearly chart of Brent crude confirmed trend up in 2004 for the first time in the contacts history. Trend means change and the higher the time frame that trend is identified the more potent the price move can become.

The Trading Tools

can provide an input to timing of hedging the main income or cost element of your business.

When should hedges be limited or a much higher percentage of volume?

If a

market is trending

implications for the hedging programme?