The issue of plastic enterprise hedging should be noted
The issue of plastic enterprise hedging should be noted
With the development of plastic (10090,120.00,1.20%) futures market, market participants are increasingly diversified. However, due to the partial enterprise insufficient understanding of hedging and risk awareness is weak, even with the success of the futures hedging strategy, the result is also not satisfactory, and even affect the normal business activities of the enterprise.
The purpose of hedging is clear
Traditional hedging theory is based on the "two-way balance hedge, static hedge", their basic motivation is to use hedging tools in the futures market will be the operation in the spot market risk transfer or circumvented. Although the traditional hedging concept has some disadvantages in practice, it is very clear about the purpose of hedging. Therefore, the enterprise must set up the correct concept of hedging before hedging, not only to draw a line with speculation, but also to distinguish the difference between arbitrage and arbitrage. The purpose of the participation of enterprises in hedging is to be "two locks and one drop", while the arbitrage is "profit", which is a profit opportunity chase in the market fluctuation. Therefore, the investment objectives of the two are different, and the operation methods are naturally different.
A plastics processing enterprises in order to avoid the risk of rising raw materials, starting in January for hedging, according to the enterprise production plan in the first quarter, by establishing the virtual inventory, is successfully completed the intended target, but the hedge strategy should be in March with the spot at the end of the raw materials warehouse, chasing for extra profits, enterprises not to settle a futures position on time, the results against the original intention of the hedge, causing unnecessary losses.
Therefore, when the enterprise is hedging its trades, it must be clear that the hedging is to avoid the market risk and not to obtain the extra profit. In particular, at the end of a hedging cycle, a futures position must be understood in accordance with the plan, and its strategic objectives are strictly enforced.
Risk awareness should be improved
The use of futures for hedging, from the perspective of operation, is to transform the market price fluctuation into the basis difference fluctuation. Because the base difference is more volatile and stable than the market price, it reduces the risk of price fluctuation, but it is not equal to the enterprise can completely avoid the risk.
Plastic hedge basically is to use plastic futures hedge on spot exposure, but plastic option in our country at present is still not listed, for can not good hedge futures exposure, if mishandled, also likely period now double deficit situation.
From the perspective of risk, hedging risk is mainly divided into basic risk, daily settlement risk and enterprise internal risk. For basis risk, the enterprise can try using basis trading hedge, specific operation is: the spot buyers and sellers for months futures pricing standard, and the basis of plus or minus a fixed basis, thereby determine the spot price of the two sides traded, and the enterprise through the period now hedge to lock in the basis.
For daily settlement risk and the enterprise internal risk, the enterprise must establish strict internal control system, on the one hand is to establish a risk early warning mechanism of hedging, on the other hand is to improve the regulatory mechanism of checks and balances, to avoid the possibility of a person right too.
Choose the right moment
Plastic companies usually need to maintain a quarterly spot flux, so a full corporate spot risk hedging cycle is around three months. In the futures market, a mid-to-short term trend band will also be magnified by three months, plus the margin leverage characteristics of the futures market. If companies don't pay attention to the market trend, short of potential, the potential of judgment and timing, even if the judgment of the trend direction, may also be due to the short to medium term band fluctuations hedge strategy out ahead of time. Therefore, in the choice of timing, we cannot ignore or even isolate the market local situation and the analysis of the technical form.
In the author's opinion, "selective hedging" is an improvement in this aspect, and it emphasizes the opportunity to use the advantage of the advantage of the base difference to make the timing of the hedging intervention. Only when it is expected that the spot price and index futures price will change, will the hedging trade be engaged in the event that the basis difference is expected to change. Therefore, enterprises can also refer to its operation strategy in the implementation of hedging.
In general, plastic enterprises should make clear purpose in the process of hedging, raise risk awareness, and then consider the choice of timing. In addition, we hope that China's financial market can be improved gradually to guarantee the stable operation of the real economy.
