As a liquidity provider, ZitaPlus serves traders looking to hedge their positions and companies engaged in high-volume trading of currencies or commodities. We ensure:
Hedging in trading is a risk management strategy used to limit or offset the probability of loss from fluctuations in the prices of commodities, currencies, or securities. By taking an opposite position in a related asset, traders can protect against losses from their primary investments.
To begin hedging with ZitaPlus, contact our team to discuss your specific risk management needs. We will guide you through the process of setting up the appropriate hedging instruments and strategies, ensuring that you have the support and tools needed to effectively manage your risks.
Hedging can benefit your business by providing financial stability and reducing exposure to adverse price movements. It allows you to lock in costs or revenues, protect profit margins, and manage budget forecasting with greater certainty.
Basis risk happens when the price of the hedging instrument and the underlying asset doesn't match, which can lead to losses. Also, the costs of entering and exiting hedges can cut into profits. There's also counterparty risk, where the other party in the hedge might not meet their obligations, causing financial losses.
No, hedging cannot guarantee profits. It is a risk management tool to protect against losses, not a guaranteed profit-making strategy.