Learn how to reduce or offset price risks in various markets by taking offsetting positions in futures contracts. Explore the fundamentals of hedging, key considerations, real-world examples, and the Canadian regulatory environment.
Explore short and long hedge strategies with futures contracts to protect against price volatility, featuring practical examples, rolling hedges, and references to Canadian regulations.
Discover how imperfect hedges can still mitigate risks in futures-based hedging, understanding basis risk, timing mismatches, contract size challenges, and real-world scenarios. Learn best practices for Canadian markets under CIRO oversight.
Explore the concept of the optimal hedge ratio in futures hedging, including how to minimize risk by accounting for correlation, basis risk, and real-world market dynamics.
Discover hedging strategies for Canada's energy and agricultural markets, exploring futures contracts, basis differentials, and real-world examples for risk management.
Explore how to hedge exposures when exact futures contracts do not exist, leveraging statistically correlated proxy instruments in agricultural, currency, or other financial markets.
Explore how CIRO oversees hedging practices in Canadian futures markets, including margin reliefs, position limit exemptions, and compliance with bona fide hedging reporting.