Discover how futures contracts can hedge against market risks, protect investments, and stabilize portfolios with effective financial risk management strategies.
Peter Gratton, M.A.P.P., Ph.D., is a New Orleans-based editor and professor with over 20 years of experience in investing, risk management, and public policy. Peter began covering markets at Multex ...
Brazil’s weather caused some excitement in the soybean market this week. One day forecasts showed no rain, and the next it did. Until late January, farmers should expect South America’s weather ...
For retirees (or soon-to-be retirees), futures contracts can offer an additional avenue for diversification and hedging opportunities, helping to manage market volatility. However, there are a few ...
AT A GLANCE · Six new contracts offer futures market participants access to tools tracking some of the most popular S&P and Nasdaq sector indices, including semiconductors and biotech · New derived ...
The VIXM ETF provides exposure to medium-term VIX futures. VIX futures-based products tend to have roll-decay. However, the effect is not as pronounced with VIXM as the VIX curve tends to be flatter ...
This is a one time “hoop” hedgers using futures must do that selling an HTA does not require. Including a hedge line with a bank to finance the hedge account is also a good idea. I will discuss this ...
Hedge funds thrive off volatility, but for the average investor, it can be a daunting task to manage market fluctuations without the assistance of hedging strategies that these funds employ.
Futures contracts are agreements to buy or sell a specific underlying asset, such as a commodity or a stock, at a predetermined future price and date. Investors use futures contracts – futures for ...
For example, a hypothetical investor looking to hedge broad market exposure could use S&P 500 index futures. However, they ...
The increased use of heavily leveraged bets by some hedge funds against U.S. Treasury futures while they go long U.S. Treasurys poses a "financial vulnerability worth monitoring because of the margin ...
Short answer: yes, inverse and volatility ETFs can hedge market crashes, but the cost, complexity, and timing often outweigh ...