Bizociety.com

Understanding
Market Risk and the solutions available to mitigate or eliminate financial
loss.

The first of a two part article?.

Fund managers, whether they be equity or
bond traders, know all too well that returns are not simply a result of their
asset selection prowess.  Many external
factors come into play.  But what are
the issues facing the professional money manager.

Commodity
Trading Advisor, Genuine Trading Solutions of Toronto, find not all fund
managers analyze their market risk.  The
company explains this is often due to a lack of education and a failure to
understand the mitigating solutions for off-setting risk.

Share This

Hedging,
understanding the benefits for a risk management solution.

The second of a two part article?.

Before I discuss
the use of hedging to off-set risk, we need to understand the role and the
purpose of hedging.  The history of
modern futures trading begins in Chicago in the early 1800’s. Chicago is
located at the base of the Great Lakes, close to the farmlands and cattle country
of the U.S. Midwest making it a natural center for transportation, distribution
and trading of agricultural produce. Gluts and shortages of these products
caused chaotic fluctuations in price. This led to the development of a market
enabling grain merchants, processors, and agriculture companies to trade in
contracts to insulate them from the risk of adverse price change and enable
them to hedge.

Share This

Today’s
Commodity Trading Advisor is no longer to be thought of only as a Portfolio
Manager.  His role has expanded
considerably as investment products become more complex.

Commodity Trading Advisor, Genuine Trading Solutions, a registered CTA
with the CFTC, says the role today of a CTA is constantly evolving.

Dwayne Strocen, President of Genuine Trading Solutions says once upon a
time a Commodity Trading Advisor was content to be known as a Portfolio Manager
trading commodities and futures for a managed futures fund.  There is no question today’s investor has
become more sophisticated.  In response,
today’s selection of investment products has become ever more complex and
varied, the need for the CTA to understand the uses and management of these
products becomes even more acute.

Share This