Sentences with phrase «offset against positions»

Not exact matches

By using their own models, big Wall Street banks can, for instance, minimize their capital requirements by combining the potential risk of two trading positions that offset one another, rather than holding capital against the risk of each one going sour.

A hedger achieves protection against changing cash prices by purchasing (selling) futures contracts of the same or similar commodity and later offsetting that position by selling (purchasing) futures contracts of the same quantity and type as the initial transaction.

By taking a short position in the E-Mini NASDAQ futures market, and offsetting sector - specific exposure, a market participant can protect against short - term downside risk and offset potential declines around specific economic events.