Hedging and Trading Consulting

Hedging

FT Mercati can provide hedging advice and assistance to companies whose business requires them to buy or sell non-ferrous metals, semi-finished and finished products.

Large changes in prices can have serious effects on the value of inventories or the purchase of new raw materials.

However, by acting appropriately on the financial markets, it is possible to contain or eliminate this risk.

The possibility of opening long and short positions allows one to protect oneself in the event of both rising and falling prices.

Starting from the information provided by the individual company on the timing and methods of metal procurement, as well as the timing and methods of sale of the finished product, all useful indications are provided to adequately manage the price risk in order to contain the effects of rises or falls that may erode or wipe out the company margin.

Trading

FT Mercati can provide trading advice and assistance to companies operating in the non-ferrous metals sector.

Starting from the information provided by the company about the timing and methods of metal procurement, useful indications are given for making fixings according to price trends.

The aim is to avoid (or reduce to the essentials) metal purchases during very bullish price phases and make the most of downturns.

By working systematically and with good tools for analysing market trends, it is possible to trade with small deviations from the annual or period average.

Training

FT Mercati organises refresher and training courses at its own premises or directly at the customer's premises.
The courses are held by highly qualified personnel and can be customised to the customer's needs in terms of both content and duration.
These are some examples of the topics that can be covered:

Introduction to the LME-London Metal Exchange

How Prices are Formed - Spot (Cash) and Forward (Future) Prices - LMEselect, Ring, Inter-Office

Introduction to Hedging

How to hedge at the LME - Protection of stock value - Locking in a future price - Relationship with the broker.

Technical analysis applied to the world of non-ferrous metals

Understanding price trends in order to make the most of them - How to anticipate market trend reversals

Using Excel for different business needs

How to create a sales list based on LME prices - How to compare supplier prices with LME prices - How to value stock.