For dairy producers and transformers as well as industrial consumers of dairy products, the use of derivatives provides significant benefits in mitigating
against price volatility.
Oil - related revenue has dwindled since 2015 as a period of low prices reduced interest from producers and consumers in financial instruments that offer protection
against price volatility, said Amrit Shahani, research director at Coalition.
Margin accounts are a big part of buying and selling futures contracts, which allow buyers and sellers to protect
themselves against price volatility.
Not exact matches
«A lot of these guys are going to pull the rip cord and get out of the trade when the
price goes
against them with all this intraday
volatility,» said S3 Partners» Head of Research Ihor Dusaniwsky.
But that
volatility, as Ghosh likes to note, is the upside of the integrated nature of the company, which gives it a continued hedge
against the differential in world oil
prices through its downstream and midstream assets — on the midstream side, Husky operates a 2,000 - kilometre crude - oil pipeline system, and its downstream operations include upgrading and refining crude oil, and marketing gasoline, diesel, jet fuel, asphalt and ethanol in Canada and the United States.
The Strategic Growth Fund remains fully hedged, with the same «staggered strike» position we had at the 2007 peak, which strengthens our defense
against potential market losses by raising the strike
prices of our defensive put options, at a cost of just over 1 % of assets in additional put premium (which is relatively inexpensive with the CBOE
volatility index currently at about 17).
Scrambling to hedge their positions
against further losses, investors bid up the
prices of options, leading to the surge in the VIX, a gauge that measures the implied
volatility of near - term S&P 500 index options.
As we build our sector - leading asset bases and new factories — the nutritional powders, consumer cheeses and the beverages plant — when they all come online in the next two to three years, they will deliver the ultimate prize, which is an effective shield [
against global
price volatility].»
But there are several reasons to diversify crops, such as hedging farm revenue
against the
volatility of cocoa
prices.
Green Alliance advocates Britain take a more activist stance on energy and food conservation, alongside greater spending on renewable energy production, to protect
against further
price shocks and the
volatility that always seems to send
prices up rather than down.
«Alternative fuels offer the potential, if not to lower the
price [of petroleum - derived fuels], at least to provide a hedge in the future
against their future growth or, put differently, their
volatility,» says technologist Douglas Kirkpatrick, DARPA's program manager for alternative fuels efforts.
As with other hybrids, the fuel savings (GM forecasts 48 mpg) may not pencil out
against the cost premium using today's values, but insulating yourself from future fuel
price volatility is a value to some.
The remaining 20 % -30 % in cash equivalents continues to provide value as a buffer
against downside
volatility, as well as serve as a storage place until it is time to acquire assets at more attractive
prices.
When you hold a particularly risky stock (one that can quickly swing high or low in
price) or during times when the stock market as a whole is experiencing a lot of
volatility, put options can act as insurance
against downside risk.
Overall, energy stocks may not fully capture oil
price moves since companies hedge
against some of the
volatility, and also make other decisions for shareholder value that may not have direct influence from the oil
price.
Investing in alternative fuels is not only good for the environment, it's a smart move for our company as biofuels have the potential to hedge
against future oil
price volatility and carbon regulations.
«Accordingly, as we concluded in D.P.U. 10 - 54, at 229 - 230, the Cape Wind facility will produce far greater benefits in terms of its: (1) contribution to narrowing the projected gap between supply and demand of renewable resources; (2) contribution to compliance with GWSA emission reductions requirements; (3) contribution to fuel diversity; (4)
price suppression effects; (5) ability to act as a hedge
against future fuel
price increases and
volatility; (6) contribution to system reliability; and (7) ability to moderate system peak load.
Green energy would not protect
against such
volatility, and given renewable energy's own inherent
volatility, wind and sunshine being subject to Nature's whims, green autarky might amplify energy
price volatility.
In other words, fossil fuel
price increases and
volatility will increase energy bills, and measures which reduce consumption and shift production away from fossil fuel sources are a way of hedging
against this.
In a bravura performance, Shultz articulated the rationales for a carbon tax (and
against cap / trade), including cap / trade's
price volatility and vulnerability to market manipulation, a carbon tax's straightforwardness, and the success (and revenue - neutrality) of British Columbia's carbon tax, as well as the general power of
pricing and the insurance value of a carbon tax.
Beta is a measure of an individual stock's
price volatility against a broader market measure, which is typically an index like the S&P 500.
The
price of Bitcoin had been undergoing massive
volatility as regulators around the globe are taking up final stands either in favour of or
against the cryptocurrency revolution.
Underpinned by elastic algorithm - controlled monetary policy, the team behind USDX Protocol stated that the system will ensure that / USDY will never stray too far from its pegged value, thus safeguarding
against volatility in
price, which is a major issue for cryptocurrencies such as Bitcoin.
The CBOE
Volatility Index (VIX) is progressively becoming the first inversely - correlated asset (to my knowledge) to provide moderate protection
against wildly fluctuating Bitcoin
prices.
There are four goals of
price stable Smart Coins (bitAssets)-- a relatively reliable solution to predict the future value of a token, a predictable stable
price with reduced
volatility, hedging
against volatile cryptocurrency markets and
price action, and a unit of account distinct from assets with capital gains or losses (which has increased tax liability).
Not only will close monitoring of exchanges help
against abuse, but they will also help reduce
price volatility.
Well, exactly what we were expecting in the sense that we couldn't really have predicted how
price would move
against a backdrop of a substantial degree of
volatility.
● Token holders (including strategic investors and miners) seeking to post their assets as collateral in order to free up capital or earn income; ● Speculators and market - makers aiming to benefit from
price volatility and to capture arbitrage opportunities; ● Early post-crowdsale entities with idle crypto assets, that could be lent
against collateral, providing income generation; ● Tokenomy - powered / Tokenomy - anchored businesses demanding liquidity and liquidity management tools to deploy liquidity surpluses, or to cover liquidity gaps; ● Crypto investment funds seeking interest income through the lending of their portfolio assets (while retaining exposure); ● Crypto exchanges looking to provide more trading options to their clients.
Essentially, it exists to reduce the
price volatility of the Dai
against the US Dollar.
With cryptocurrency futures, the concept for the market will remain the same — hedging cryptocurrencies
against the
volatility of future
prices.
Furthermore, businesses that have avoided using Bitcoin as a form of payment for large - scale transactions that involved terms, due to the unpredictable
volatility of the currency, will now be able to guarantee the value of a transaction using futures contracts to hedges
against adverse market
price movements, similar to the way businesses handle international transactions.
Tether has proven to be a unique payment service that protects its customers
against Bitcoin's
price volatility.
Tether protects
against Bitcoin
price volatility by backing payments with fiat currency on a 1:1 ratio.
This means that more equity will be required to remain sitting in the home as a buffer for contingencies and as a protection
against market
volatilities that would affect expenses and sales
prices for defaulted HECM loans.