Introduction In the world of metals trading, particularly in aluminium, hedging strategies play a crucial role in risk management. One such approach involves using put options. But what exactly is a put option, and how does it compare to selling futures? In this episode of Hedging with Jorge, we dive deep into the mechanics of […]
Introduction As industries shift towards sustainability, environmental, social and governance (ESG) factors have become central to investment decisions. In the aluminium sector, where resource efficiency and ethical sourcing play crucial roles, ESG compliance shapes investor confidence and corporate responsibility. This blog explores how ESG influences aluminium investments and highlights real-world examples from industry leaders embracing […]
When it comes to thinking and giving back to Mother Earth, we are required to think deeply about the actual changes we as humans can bring. This conversation is incomplete without striking a reference in making use of renewable energy as a part of the strategic changes for the upcoming generations. For visioning a sustainable […]
When it comes to protecting aluminium consumers from price volatility, call options are a commonly used tool. But the reasoning behind buying a call option as a hedge is often misunderstood. In this episode of Hedging with Jorge, we break down how and why aluminium consumers use call options to safeguard against price hikes. Buying […]
Introduction When we think of modern aviation and space exploration, we often picture powerful jets soaring through the skies or rockets launching into orbit. But behind these remarkable feats lies a silent hero – aluminium. Its exceptional properties have made it the backbone of aerospace engineering, enabling lighter, stronger and more fuel-efficient designs that have […]
Welcome to another blog of Hedging with Jorge, where we continue to simplify complex market concepts into simple, practical explanations. We will explore the world of call options, a tool that offers flexibility and protection in uncertain markets. A call option is essentially the right to buy an asset at a predetermined price, the strike […]
Pure energy The generation of electricity from the energy of moving water in Russia began at the end of the 19th century. Hydrogeneration technologies were radically improved during the Soviet era and further developed in the Russian Federation. Over time, hydroelectric power plants (HPPs) have proven their reliability, with their main advantage being significant generation […]
In today’s world, the defence industry requires higher strength and readiness, playing a critical role in maintaining peace and security. It is no surprise that aluminium is a metal that is extensively used in diverse sectors and industries including the defence industry.? This is especially true when it comes to maintaining security and peace with […]
In this blog, we delve into the strategic considerations a speculator must weigh when choosing between a call option and a futures contract. Using a practical example, we’d like to explain the nuances of each approach. Scenario Overview Imagine you’re a speculator eyeing a long position in the market. You have two primary instruments at […]
Today, we’re diving into call options, what they are, how they work and the factors influencing whether you should exercise them. Let’s break it down using a simple example from the aluminium market. A call option is a right to buy a commodity (in this case, aluminium) at a specified price (known as the strike […]