Risk Mitigation

Risks are inherent in commodity trading, so proactive and effective risk management is embedded in our culture. Our zero-tolerance policy to price, freight and currency risks ensures that our counterparties and partners are protected. 

Given our extensive background in derivatives trading, we are in a unique position to compete in the commodities trading industry. By using complex derivative instruments and doing our due diligence, we can provide accommodating quotes, prices, currencies, and delivery schedules to our counterparties. 

Furthermore, our extensive knowledge of financial markets coupled with a thorough understanding of underlying assets and advanced use of derivatives allows us to develop quantitative methods that help us choose the most effective hedging strategy and effectively mitigate risk, consequently providing more leeway in transaction structuring.

Our infrastructure, resources and acquired knowledge, combined with our solid risk management framework enables us to engage in commodities trading in multiple currencies while providing an adaptive pricing structure where it is possible to switch between fixed and formula-based pricing. Not only do we offer our counterparties custom pricing interval for sales and purchase,we offer the flexibility of switching from a monthly average to a delivery-based (Bill of Lading, Railway Bill, etc.) pricing period and vice versa. Lastly, we provide our counterparties with tigger optionality so they have the freedom to set their commodities’ selling prices per the prevailing market conditions at any given time.