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Managing risk

Risk management is a core competence for trading firms. They store and transport physical assets across the globe and earn slim margins on high-value, high-volume transactions. They use sophisticated risk management techniques to link revenues to costs and operate effectively in volatile markets.

Managing risk

Risk management is a core competence for trading firms. They store and transport physical assets across the globe and earn slim margins on high-value, high-volume transactions. They use sophisticated risk management techniques to link revenues to costs and operate effectively in volatile markets.

Managing flat price risk

The practice of hedging is fundamental to commodity trading. Trading firms systematically eliminate their flat price exposure by taking out futures contracts against both components of a transaction.

Hedging against flat price risk
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