is a hedger? A hedger in the platinum market is an individual who uses the futures market to offset price risk when intending
to sell or buy the actual platinum. Hedging is possible because the platinum cash prices and platinum futures prices tend
to move in the same direction. However, the difference between the cash price and the futures price may narrow or widen. The
change in the difference between the cash price and the futures price is called basis risk. Because of the changing basis
no hedge can be perfect.
Where can platinum be hedged? Platinum can be hedged
on the New York Mercantile Exchange (NYMEX). The NYMEX offers a competitive and transparent market place to engage in efficient
hedging strategies. If you are interested in hedging platinum please contact us. One of our experienced platinum traders will be happy to give you a call to discuss hedging strategies with you.
A Guide to Metals Hedging
Click on the link above to download a very informative .pdf brochure entitled "A
Guide to Metals Hedging.” It was published by the New York Mercantile exchange. This is a must read guide for any novice
or advanced trader considering a hedge in the platinum market using exchange traded platinum futures and options.
Click here to contact a commodities broker with experience in the platinum market.