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The Guide to Risk Management (hedging) with Futures I

Eurex Exchange

The Guide to Risk Management (hedging) with Futures I

  • Start:25 May 2016 10:00 AM
  • Organizer:Eurex Exchange
  • Featured Speaker:Paul North, CMA Trainer
  • Language:English


In the first part of the series Webinars, Paul North will go through the basic concepts of futures’ hedging and using Eurex interest rate derivatives on how to calculate the simple hedge ratio. After this session, you will be more clarified about how to make risk management hedging with Futures.

Covered Topics:

  • Brief review of a futures contract terminology - contract size, delivery month, cash/physical settlement tick size and tick value
  • Understanding hedge compensation and the role of variation margin
  • How does the futures price and the spot price behave overtime?
  • Understanding the concept of the “sellers choice” in a futures contract quality, location, timing issues – what is the CTD?
  • Working out the simple hedge ratio understanding the meaning of basis

You may watch the playback of this webinar at the link below.