Introduction to Hedging on the LME with Futures

This course will provide you with a thorough understanding of the basics of price risk management through hedging using LME futures contracts.

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Is this course for you?

This course is suitable for you if you want to know more about metals futures and the management of price risk on the LME. It is advised that you take 'Introduction to the LME' before attending this course to fully benefit from this session.

What will you learn

  • Learn how effective price risk management can be achieved with LME services
  • Understand the benefits of hedging with futures across all sectors of industry
  • Work through interactive workshops on hedging futures
  • Gain an understanding of the role that clearing and LME Clear play in establishing trades.

Benefits for you

This course aims to provide you with a fundamental knowledge of price risk management in the metal industry. You will develop a comprehensive and practical understanding of the benefits of hedging with futures through highly interactive workshops which are based on typical examples of the types of risk scenarios prevailing in the metal industry.

Benefits for your organisation

This course will help your organisation by highlighting the key benefits of hedging futures in terms of minimising the impact of price volatility. The interactive format of the course gives employees the knowledge of how to apply hedging theory within the context of their organisation.

Programme

  • Overview of the LME market
  • Basic concepts, uses and benefits of hedging with futures
  • Introduction to risk and price volatility
  • Long, short, transactional, and strategic hedges
  • Costs of hedging
  • Carries
  • Using the right hedging instrument
  • Hedging with Monthly Average Futures
  • Hedging workshops

Pre-requisites

Previous knowledge of the LME.

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Contact us

For further information please email our Education team.