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4 thoughts on “wholesale fashion jewelry suppliers toronto What is the difference between the preservation and hedge?”
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copper wholesale jewelry Set up value preservation is hedging transaction, because the two are one meaning, so I think the difference between the hedging and hedge is very small. If the difference between the two is to be investigated, it is the hedging period. It focuses on protecting the price of these goods itself from losses, and hedging transactions are to reduce risks.
How are the duration of value preservation? For example, if I bought a batch of soybeans in the market and bought 10 tons, I would do it. Anyway, I bought 10 tons of soybeans, but I was worried that the price of soybeans would decline in the future. If I think that if it is declined, then I will spend this money now, will I not buy it expensive? It must not work. At the same time, I sold 10 tons of soybeans in the futures market, and the deadline was also three months. After three months, if my soybean price rose or the price had fallen, my rights and interests could be guaranteed.
It three months If the price of this soybean really dropped, it proves that I bought it at that time, and it doesn't matter if you buy it. Because I didn't buy a futures at the time? Futures after three months, because I have soybeans in my hands. I have a spot. I sold 10 tons in the futures market. I just have 10 tons now. Isn't it good to sell this price? Just hedge the risk. If the price rises, it is to keep my original price, because I have stocks, I do n’t sell it.
In hedging transactions, hedging means to reverse this futures and spot. I now buy the spot, then I sell futures with this at the same time. If I buy the futures Both reverse operation. Although the market is not a market, one is called the spot market, and the other is called the futures market, the transactions that the two are completely reverse. Isn't it equivalent to no transaction? Therefore, the relationship between our transactions is effectively avoided. Due to the changes in the price caused by the delay of time, I can keep the current price regardless of the rise or decline of the price after three months.
fashion jewelry wholesalers nyc The purpose is very different. These two are two different professional terms, and the hedging period is the purpose of avoiding risk stability. And the profit and loss are different, hedging transactions are actually a liquidation. The specifications are also different. Although both of the two will avoid risks, there are great differences. The hedge is mainly targeted at long -term contracts. Hedging is mainly targeted at the price of spot, and the risk effect is different. Hedry is not as preserved as a period.
charms jewelry wholesale The purpose of the two is different, the profit and loss are different, the specifications are different, and there are some differences in the concept. The set of conservation is the long -term contract of the spot, and the hedge object is the future spot price.
wholesale jewelry cheap alloy india in Different goals, the state of losses is different, and the scope is different. And the amount of investment is also different, and the means of use are also different.