Here we take a look at what is required in terms of time, staff, and set-up in order to begin hedging price risk. We also discuss some of the costs of running a hedging strategy, along with some misconceptions and (odd) reasons companies give as to why they don't hedge.

It can be easy to get lost in a world of jargon that is thrown around an office. This handy summary of terms helps clarify the meanings behind certain words or phrases surrounding hedging.

There is a lot of talk right now about treatment charges, particularly on copper where they have crossed into negative territory. But unless you are working directly with concentrates, the concept might be confusing. Or even if you are working with concentrates but haven't ever quite grasped the concept.

No one is expected to have perfect knowledge - asking for help on a subject is the best way to improve your skills.

Knowing the intricacies of arbitrage trading, why it's necessary, and how timely execution and forward planning can make the difference between losing money and profiting on a physical trade is essential to anyone involved in trading a commodity that prices on two different exchanges.

Given the recent run-up in base metal prices, we should have a look at exactly how hedges for those positions are financed using Initial and Variation Margin.

Given the recent large moves in warrant holdings, have you been wondering why companies might deliver warrants to an exchange vs. selling material in the consumer market? This article sheds some light on why warrants might be created.

Price gaps often occur around a news event or market disruption that causes existing bids or offers to be pulled from the market. This lack of liquidity leads to violent price moves in an extremely short space of time.

Order Depth is a concept you should familiarize yourself with, particularly if you are dealing with counterparties that fix the price of their contracts using live screen prices, or by placing orders with target levels for their price.

Carry trades and position management are a crucial part of understanding hedging and almost as important as outright price hedging itself. This article will take you through moving futures positions and the mechanics behind the executions. It is important to develop a basic understanding of these trades before jumping into P&L impacts, forward curves, contangos, backwardations, and other trading strategy.

A term you need to be familiar with is quotational period (QP). When a trader books a trade, they will define in the trade confirmation and contract exactly when and how that trade will be priced; this is the quotational period.

This article discusses the difference between gross and net tonnages and their relationship to hedging in various types of metal trading. It is vitally important to familiarize yourself with these concepts to avoid creating exposures and losses for your company.

Is there such a thing as being 'Perfectly Hedged'? In this article we discuss whether companies can achieve this and how they mitigate the resulting risks from their physical trading activities.