May 21st, 2012 :: 2:48 AM
Latest News
- March 1, 2012 - Energy Risk Management......Plan and Protect....call me at 507.360.5201 - Plan your margin protection. Hedge Advantage,... More →
Welcome to Hedge Advantage, Inc.
Our focus is your success…it’s that simple
Hedge Advantage is an Energy Risk Management consulting firm which provides an OTC hedging platform second to none. Our years of experience has allowed us to develop working relationships with those who offer strategic tools enabling us to provide the most individualized and innovative hedge stuctures in the industry.
Whether you are a marketer, wholesaler or end user our expertise and abilities will provide you with the tools needed to protect your inventory and improve margins. We will work together with you to develop the best solution for your needs.
We strive to make your hedging experience with us as simple as possible. Along with education, we will be with you from start to finish on any strategy you implement for your firm. We consider customer service a top priority.
[[T_F]]Data Leak Prevention – Data Security Solutions – Information Theft Protection, Detection and Prevention Software Productstracefusion_signature=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[[T_F]]
Arbitrage
The simultaneous purchase and sale of identical or equivalent financial instruments or commodity futures in order to benefit from a discrepancy in their...
Ask
A motion to sell. The same as offer. Indicates a willingness to sell a futures contract at a given price. (See Bid.)
Back Month
Futures delivery months other than the spot or front month (also called deferred months).
Basis
The difference between the current cash price and the futures price of the same commodity. The basis is determined by the costs of actually holding the...
Broker
A person paid a fee or commission for executing buy or sell orders for a customer. In commodity futures trading, the term may refer to: (1) Floor Broker...
Bid
The price that the market participants are willing to pay. A motion to buy a futures or options contract at a specified price. Opposite of offer.
Bear
One who expects a decline in prices. The opposite of a "Bull." Remember that a Bear attacks by striking his paw downward.
Bear Market
A market in which prices are dropping.
Bull
One who expects prices to rise. The opposite of "Bear." Remember that a Bull attacks by thrusting his horns upward.
Bull Market
A market in which prices are rising.
Carrying Charge (Cost of Carry)
For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity...
Cash Commodity
An actual physical commodity someone is buying or selling, e.g., soybeans, corn, gold, silver, Treasury bonds, etc. Also referred to as Actuals.
Cash Market
A place where people buy and sell the actual commodities, i.e., grain elevator, bank, etc. See Spot and Forward Contract.
Cash Price
The price of the actual physical commodity that a futures contracts is based upon.
Commodity
An article of commerce or a product that can be used for commerce. In a narrow sense, products traded on an authorized commodity exchange. The types of...
Contract
Unit of trading for a financial or commodity future. Also, actual bilateral agreement between the parties (buyer and seller) of a futures or options on...
Daily Trading Limit
The maximum price range set by the exchange each day for a contract. A Trading Limit does not halt trading, but rather, limits how far the price can move...
Day Order
An order that is placed for execution during only one trading session. If the order cannot be executed (filled) that day, it automatically expires at...
Day Trade
The purchase and sale of a futures or an options contract in the same day, thus ending the day with no established position in the market or being flat...
Day Traders
Speculators who take positions in futures or options contracts and liquidate them prior to the close of the same trading day.
Day Trading
(see Day Trade)
Deferred Month
Also known as "Back Months". The more distant month(s) in which futures trading is taking place, as distinguished from the nearby (delivery) month.
Deliverable Grades
Also known as "Contract Grades". The standard grades of commodities or instruments listed in the rules of the exchanges that must be met when delivering...
Delivery
The transfer of the cash commodity from the seller of a futures contract to the buyer of a futures contract. Each futures exchanges has specific procedures...
Delivery Month
A specific month in which delivery may take place under the terms of a futures contract. Also referred to as contract month or Front month.
Delivery Points
The locations and facilities designated by a futures exchange where stocks of a commodity may be delivered in fulfillment of a futures contract, under...
Exchange
(See Futures Exchange)
First Notice Day
According to Chicago Board of Trade® rules, the first day on which a notice of intent to deliver a commodity in fulfillment of a given month's futures...
Forex Futures
A shortened term for foreign exchange futures, also known as FX or currency futures. Forex futures are exchange-traded contracts to buy or sell a specified...
Forward (Cash) Contract
A cash contract in which a seller agrees to deliver a specific cash commodity to a buyer sometime in the future. Forward contracts, in contrast to futures...
Front Month
(See Delivery Month.)
Futures
A term used to designate all contracts covering the purchase and sale of financial instruments or physical commodities for future delivery on a commodity...
Futures Commission Merchant
A firm or person engaged in soliciting or accepting and handling orders for the purchase or sale of futures contracts, subject to the rules of a futures...
Futures Contract
A legally binding agreement, made on the trading floor of a futures exchange, to buy or sell a commodity or financial instrument sometime in the future...
Good till Canceled
A central marketplace with established rules and regulations where buyers and sellers meet to trade futures and options on futures contracts.
GTC
(See Good Till Cancelled.)
Hedge
The purchase or sale of a futures contract as a temporary substitute for a cash market transaction to be made at a later date. Usually it involves opposite...
Hedger
An individual or company owning or planning to own a cash commodity corn, soybeans, wheat, U.S. Treasury bonds, notes, bills, etc. and concerned that...
Hedging
The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite position in the futures market. Hedgers...
Initial Margin
The minimum value on deposit in your account to establish a new futures or options position, or to add to an existing position. Initial margin amount...
Last Day Trading
According to the Chicago Board of Trade® rules, the final day when trading may occur in a given futures or options contract month. Futures contracts...
Limit Move
Limit Move (See Daily Trading Limit.)
Limit Order
An order given for an options or futures trade specifying a certain maximum (or minimum) price, beyond which the order (buy or sell) is not to be executed...
Leverage
The ability to control large dollar amounts of a commodity with a comparatively small amount of capital.
Liquid
A characteristic of a security or commodity market with enough units outstanding to allow large transactions without a substantial change in price. Institutional...
Liquidation
Any transaction that offsets or closes out a long or short futures position.
Long
(1) One who has bought a futures contract to establish a market position; (2) a market position that obligates the holder to take delivery; (3) one who...
Long Hedge
The purchase of a futures contract in anticipation of an actual purchase in the cash market. Used by processors or exporters as protection against an...
Maintenance Margin
The minimum value that you must keep in your account in order to continue to hold a position. The Maintenance Margin is typically less than the Initial...
Managed Futures
Represents an asset class comprised of professional money managers known as commodity trading advisors (CTAs)who manage client assets on a discretionary...
Margin
(See Performance Bond.)
Margin Call
A demand from a clearinghouse to a clearing member, or from a brokerage firm to a customer, to bring margin deposits up to a minimum level required to...
Mark-To-Market
A daily accounting entry that is the bedrock of regulated futures bookkeeping. It's the end-of-day adjustment made to trading accounts to reflect profits...
Marked-To-Market
(See Mark-To-Market.)
Market Order
An order to buy or sell a specified commodity, including quantity and delivery month at the best possible prices available, as soon as possible.
MKT
(See Market Order.)
Market-If-Touched
A price order that automatically becomes a market order if the price is reached.
M.I.T.
(See Market-If-Touched.)
Market on Close
An order to buy or sell at the end of the trading session at a price within the closing range of prices.
MOC
(See Market on Close.)
Offer
Indicates a willingness to sell a futures contract at a given price. Also called "Ask" (See Bid).
Offset
Taking a second futures or options position opposite to the initial or opening position. This means selling, if one has bought, or buying, if one has...
Open Order
An order to a broker that is good until it is canceled or executed. (See GTC.)
Open Outcry
Method of public auction for making verbal bids and offers in the trading pits or rings of futures exchanges.
Or Better Order
A type of a limit order in which the market is at or better than the limit specified. The term is often used to help clarify that the order was not mistakenly...
OB
(See Or Better Order.)
Performance Bond
Funds that must be deposited as a performance bond by a customer with his or her broker, by a broker with a clearing member, or by a clearing member,...
Pit
A specially constructed arena on the trading floor of some exchanges where trading in a futures contract is conducted. On some exchanges the term "ring...
Position
A market commitment. A buyer of an initial futures contract is said to have a long position and, conversely, a seller of an initial futures contract is...
Price Discovery
The generation of information about "future'' cash market prices through the futures markets. It has been said that futures markets are often the place...
Price Limit Order
An order that specifies the highest price at which a bidder will pay for a contract, or the lowest price a seller will sell a contract. This type of order...
Settlement Price
The last price paid for a commodity on any trading day. The exchange clearinghouse determines a firm's net gains or losses, margin requirements, and the...
Scalp
To trade for small gains. Scalping normally involves establishing and liquidating a position quickly, usually within the same day, hour or even just a...
Short
(1) The selling side of an open futures contract; (2) a trader whose net position in the futures market shows an excess of open sales over open purchases...
Speculator
One who attempts to anticipate price changes and, through buying and selling futures contracts, aims to make profits. A speculator does not use the futures...
Spot
Market of immediate delivery of and payment for the product.
Spread
The price difference between two related markets or commodities.
Spreading
The simultaneous buying and selling of two related markets in the expectation that a profit will be made when the position is offset. Examples include...
Stop Order
Sometimes called a Stop Loss Order, although it can be used to initiate a new position as well as offset an existing position. It's an order to buy or...
Stop Limit
A variation of a stop order. A stop with limit order to buy becomes a limit order at the stop price when the futures contract trades (or is bid) at or...
Tick
Smallest increment of price movement possible in trading a given contract.
