Academic Journals Database
Disseminating quality controlled scientific knowledge

Short Term Hedging Using Futures Contracts

Author(s): Maria CARACOTA DIMITRIU | Ioana – Diana PAUN

Journal: Economia : Seria Management
ISSN 1454-0320

Volume: 15;
Issue: 2;
Start page: 436;
Date: 2012;
VIEW PDF   PDF DOWNLOAD PDF   Download PDF Original page

Keywords: Futures contracts | derivatives | hedging | OLS

The objective of this paper is to demonstrate the effectiveness of risk management portfolio using futures contracts to achieve hedging. The risk can be minimized once measured, and the traditional tool of market risk management is hedging. The objective is to identify the optimum position to minimize the variation in a contract concluded now. Clearly hedging portfolio will reduce not only risk but also profitability. In conclusion hedging aims risk management, no additional gain. Portfolio manager will have the opportunity to carefully consider the relationship between risk and return in order to act according to his profile and targeted results.

Tango Rapperswil
Tango Rapperswil

     Affiliate Program