Wade Assurance
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • Crop Overview >
      • Corn
      • Soybeans
      • Wheat
      • Supply/Demand Factors
    • About
  • Disclaimer

A Hedge on the Euro?

8/5/2020

Comments

 
To offset any further increase in the euro we could put on a hedge.  A hedge here would do three things.  1.  A hedge would offset your losses on the euro.   2.  A hedge would keep you in the game if it allows you to keep the positions you have.  At some point very soon the euro and dollar will change directions and when that happens we could turn off the hedge.  3.  A hedge would lower your stress

A hedge would simply be buying one December euro position for every euro short position you own.  If the euro continues to climb and the dollar drop, your gain in the December euro would offset most of the margin calls you are having on the September euro.
Picture
These euro shorts will work but if you get taken out today and Friday the market reverses, my experience is that only about a fourth of the positions we have on right now will put the positions back on.  Again, this should be a very good trade.  

One hang up for many of you will be that you have an additional margin to fund.  If you are near your limit now you might need to liquidate half your euro shorts to buy euros.   

Let me know what you would have me do ASAP!  We could activate the hedge if the euro moves to 1.19 or higher.
Comments
comments powered by Disqus

    This Page

    The Speculation page is used for educational purposes and to talk about our opinion on trades and what is going on in the market.  All trade recommendations are made in "The Pit".  This is also a blog page where you can ask questions, post your thoughts, or ask for help.  Be sure to use an anonymous name. If you have any questions feel free to reach out to us via email.

    Archives

    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    December 2017
    November 2017
    October 2017

    RSS Feed

Steve Wade and Tyler Wade of Wade Assurance are associated persons for AgDairy LLC.

                           Commodity Risk Disclosure Statement

The risk of loss in trading commodity futures contracts can be substantial.  You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.

Wade Assurance is an equal opportunity insurance provider.
CONTACT US
Steve Wade
swade@wadeassurance.com
​
Tyler Wade
​twade@wadeassurance.com
Picture
270-234-6074
  • Home
  • Speculation
  • The Pit
  • Resources
    • Futures Contract Specs
    • Tools
    • Terminology
    • Past Trade Performance
    • Crop Overview >
      • Corn
      • Soybeans
      • Wheat
      • Supply/Demand Factors
    • About
  • Disclaimer