Reasearch On Hedging Risk Control Of Qingdao TJ Trading Company

Recently, the international bulk commodity prices fluctuat larger and larger, which hasbrought great risk and challenge to the business. On the other hand, the futures marketis developing rapidly, so more and more enterprises begin to hedge by futures marketto avoid price risk. Since that the futures market is bidirectional, many enterprisessuffer from huge losses because of improper use of futures. I visited many rubbertrade companies in Qingdao and have found that the majority of the major losses aredue to the imperfect systems or the wrong judgement on the price trend.So this paperfocuses on the above two aspects to do research and to introduce.I take the TJ trading company as the research object to analyse the risk of TJ tradingcompany in Qingdao, pointing out that the judgement system is not perfect andmisjudgement of the price trend is the biggest risk. Then I redesign risk controlprocess of TJ trading company in Qingdao, in which I made a key analysis andresearch on the two aspects of the internal controlling system and the market risk,laying a foundation for the Qingdao TJ trading company’s price risk controlling andstable operation in the future development process. At the same time, it has also set anexample for the small and medium-sized trading companies on the work of cash outand maintaining the original value.