Tag: futures

The traditional approach to hedging the crude oil refining margin (crack spread) adopts a fixed 3:2:1 ratio between the futures positions of crude oil, gasoline, and heating oil. The latest research indicates that this might not be the optimal approach

Electricity markets present a unique set of modelling, forecasting, analytical and trading challenges. Understanding how the spot and forward markets interact, what drives each and how they're co-dependent is crucial in understanding the origination of electricity prices.

Covering the basics of Futures and Forwards along with a little on how they are traded and priced