June 26: Risk Capital - At Least You Thought It Was
It`s on the bottom of every piece of commodity trading literature, every commodity investment advertisement, as demanded by the New York Stock Exchange, the National Futures Association, etc …
In general, hedgers use commodities trading for protection against adverse future price movements in the underlying cash commodity. The rationale of hedging is based upon the demonstrated tendency of cash prices and futures values to move in tandem.
