Our Services & Products
Entities will tentatively reduce risk by trading derivatives to diminish exposure to market fluctuations. Hedging with derivatives involves taking an opposite position in the derivative instrument of the asset to be hedged (or one that is very close to it) that is equal in size.
Motivations for hedging include, but are not limited to, forecasting revenues, costs and benefits, minimizing margin fluctuations, maximizing profits and having a competitive advantage by offering clients fixed, committed prices.
Currency, interest rates or commodity exposures can be mitigated through our extended product offering of listed and OTC futures and options 24 hours / 365 days per year.
- Long hedge: A hedge that involves buying the futures contract in anticipation of buying the physical asset at some point in the future. Long hedgers are concerned that the price of the underlying asset will rise in the future making it more expensive to buy.
- Short hedge: A hedge that involves selling the futures contract in anticipation of selling the physical asset at some point in the future. Short hedgers are concerned that the price of the underlying asset will decline in the future, meaning they will not receive as high a price when they are ready to sell the underlying asset.
The LNT Group manages risk by :
- Offering an effective overview to decision makers
- Supporting our clients in the decision making process through fundamental and technical analysis tools
- Controlling risk, by knowing what the worst-case-scenario is
- Making the most out of the markets' volatility
- Reporting daily: statistics, forecasts, and announcements
- Offering tailor-made hedging strategies adapted to our clients' risk tolerance and the firm's philosophy
- Listing Futures and Options contracts
Contact us for more information.