Risk Management in Action

Risk Management in Action

Futures Real Time

This graph shows the performance of a futures hedge against the current open market price for wheat. The future purchase allows the farmer to fix the wheat price. The only downside being that the farmer won't benefit if the market falls.

The table shows also the fixed price and the current open market price.  In addition, the 'initial margin' and 'margin call' positions which impact cash flow requirements. See glossary for more.

'Using futures to fix forward wheat price for Nov-13'

Chart.

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DatePrice fixed via futuresPriceInitial MarginMargin callTotal cash flow
7 Mar 2013188.50181.60-11.00-6.90-17.90
6 Mar 2013188.50180.70-11.00-7.80-18.80
5 Mar 2013188.50184.65-11.00-3.84-14.85
4 Mar 2013188.50185.15-11.00-3.34-14.35
1 Mar 2013188.50187.65-11.00-.84-11.85
28 Feb 2013188.50186.00-11.00-2.50-13.50
27 Feb 2013188.50185.30-11.00-3.19-14.20
26 Feb 2013188.50185.00-11.00-3.50-14.50
25 Feb 2013188.50185.45-11.00-3.05-14.05
22 Feb 2013188.50186.15-11.00-2.34-13.35
21 Feb 2013188.50187.50-11.00-1.00-12.00
20 Feb 2013188.50188.15-11.00-.34-11.35
19 Feb 2013188.50187.00-11.00-1.50-12.50
18 Feb 2013188.50187.40-11.00-1.09-12.10
15 Feb 2013188.50185.50-11.00-3.00-14.00
14 Feb 2013188.50183.50-11.00-5.00-16.00
13 Feb 2013188.50184.30-11.00-4.19-15.20
12 Feb 2013188.50181.85-11.00-6.65-17.65
11 Feb 2013188.50184.40-11.00-4.09-15.10
8 Feb 2013188.50186.25-11.00-2.25-13.25
7 Feb 2013188.50187.00-11.00-1.50-12.50
6 Feb 2013188.50188.30-11.00-.19-11.20
5 Feb 2013188.50189.75-11.001.25-9.75
4 Feb 2013188.50190.00-11.001.50-9.50
1 Feb 2013188.50193.00-11.004.50-6.50
31 Jan 2013188.50190.55-11.002.05-8.94
30 Jan 2013188.50190.10-11.001.59-9.40
29 Jan 2013188.50190.05-11.001.55-9.44
28 Jan 2013188.50189.45-11.00.94-10.05
25 Jan 2013188.50187.30-11.00-1.19-12.20
24 Jan 2013188.50187.00-11.00-1.50-12.50
23 Jan 2013188.50189.80-11.001.30-9.69
22 Jan 2013188.50191.00-11.002.50-8.50
21 Jan 2013188.50190.75-11.002.25-8.75
18 Jan 2013188.50188.55-11.00.05-10.95
17 Jan 2013188.50187.90-11.00-.59-11.60
16 Jan 2013188.50188.15-11.00-.34-11.35
15 Jan 2013188.50186.75-11.00-1.75-12.75
14 Jan 2013188.50185.50-11.00-3.00-14.00
11 Jan 2013188.50183.00-11.00-5.50-16.50
10 Jan 2013188.50183.75-11.00-4.75-15.75
9 Jan 2013188.50183.25-11.00-5.25-16.25
8 Jan 2013188.50183.55-11.00-4.94-15.95
7 Jan 2013188.50182.55-11.00-5.94-16.95
4 Jan 2013188.50182.25-11.00-6.25-17.25
3 Jan 2013188.50183.00-11.00-5.50-16.50
2 Jan 2013188.50186.00-11.00-2.50-13.50
31 Dec 2012188.50186.45-11.00-2.05-13.05
28 Dec 2012188.50186.75-11.00-1.75-12.75
27 Dec 2012188.50185.25-11.00-3.25-14.25
24 Dec 2012188.50187.80-11.00-.69-11.70
21 Dec 2012188.50189.30-11.00.80-10.20
20 Dec 2012188.50185.00-11.00-3.50-14.50
19 Dec 2012188.50188.00-11.00-.50-11.50
18 Dec 2012188.50188.60-11.00.09-10.90
17 Dec 2012188.50190.00-11.001.50-9.50
14 Dec 2012188.50190.50-11.002.00-9.00
13 Dec 2012188.50189.75-11.001.25-9.75
12 Dec 2012188.50193.90-11.005.40-5.59
11 Dec 2012188.50195.00-11.006.50-4.50
10 Dec 2012188.50197.25-11.008.75-2.25
7 Dec 2012188.50198.50-11.0010.00-1.00
6 Dec 2012188.50198.50-11.0010.00-1.00
5 Dec 2012188.50198.15-11.009.65-1.34
4 Dec 2012188.50197.50-11.009.00-2.00
3 Dec 2012188.50198.75-11.0010.25-.75
30 Nov 2012188.50197.50-11.009.00-2.00
29 Nov 2012188.50199.00-11.0010.50-.50
28 Nov 2012188.50198.95-11.0010.45-.55
27 Nov 2012188.50196.00-11.007.50-3.50
26 Nov 2012188.50191.50-11.003.00-8.00
23 Nov 2012188.50189.35-11.00.84-10.15
22 Nov 2012188.50187.55-11.00-.94-11.95
21 Nov 2012188.50187.75-11.00-.75-11.75
20 Nov 2012188.50187.25-11.00-1.25-12.25
19 Nov 2012188.50187.75-11.00-.75-11.75
16 Nov 2012188.50187.50-11.00-1.00-12.00
15 Nov 2012188.50189.00-11.00.50-10.50
14 Nov 2012188.50189.00-11.00.50-10.50
13 Nov 2012188.50188.00-11.00-.50-11.50
12 Nov 2012188.50189.65-11.001.15-9.84
9 Nov 2012188.50194.20-11.005.69-5.30
8 Nov 2012188.50194.75-11.006.25-4.75
7 Nov 2012188.50193.50-11.005.00-6.00
6 Nov 2012188.50192.25-11.003.75-7.25
5 Nov 2012188.50191.00-11.002.50-8.50
2 Nov 2012188.50188.50-11.00.00-11.00
1 Nov 2012188.50188.50-11.00.00-11.00

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