Advanced Steel Hedging: Strategies and Execution Course
Steel Market Update and Spencer Johnson, StoneX Financial Inc. – FCM Division, along with the CME Group, will be conducting this workshop for those who are actively involved in the buying or selling of steel. This is a continuing education course, which will go past introducing you to hedging and the terminology involved when dealing with financial derivatives, and to concentrate on defining strategies and the execution of trades involved with a specific end goal in mind.
Hedging Price Risk is a strategy executed by sophisticated buyers on a wide variety of products around the world. The hedging strategies come in various shapes and forms such as options (puts and calls), and combinations of physical steel, futures/swaps and options, etc.
Our expert, Spencer, has worked as an instructor in hedging and risk management for the steel industry, for over a decade, and has seen all shapes and sizes of hedge strategies and dilemmas. This more advanced workshop is designed to guide you through more detailed examples of these strategies and dilemmas so you can move beyond the knowledge of what you should be doing and build to actually executing on that knowledge.
Depending on the desired goal, a company will engage sales and or purchasing to coordinate with management and or finance/risk management to determine a strategy for the company’s risk profile. For example, if your company is interested in protecting inventory values then there are specific moves, and counter moves, that must be executed on a regular basis in order to achieve the end goal. In this workshop, we will explore specific strategies and practice the execution of trades through real world scenarios.
"Outstanding course. Real world situations were to the point, in layman's terms. Enjoyed the live interactions and discussions. A course any experienced steel buyer, steel seller, and CFO needs to take. Great job to SMU on educating the steel community. Hedging is a very large part of our strategy, in our business model. We commit to customers for six months upwards to a year in pricing. So the only way we can drive the risk out in this volatile market, is to hedge." - Chris Shipp, VP of Strategic Partnerships, Reibus (formerly Priefert Steel)
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