Research On Hedging Of Yunnan YT Group Co.,Ltd

The current Fed interest rate has been gradually developed,the European debt crisis more serious,the British retreat to Europe has also produced some unfavorable factors,while oil prices and commodity volatility makes the financial market precarious.China has become the world’s largest consumer in terms of non-ferrous metal copper,and as the process of internationalization of the renminbi is accelerated,the RMB exchange rate is open to two-way volatility,and in 2016 the commodity market situation will be more Complex and volatile,commodity prices volatility on the colored industry have a greater price risk,the use of hedging function to lock profits,to avoid the main market price risk for the healthy development of enterprises and the establishment of an international competitive advantage is of great significance.This paper first describes the YT company hedge trading principles,strategies,processes,and describes the YT company design hedging program-the purchase and sale of the overall closure of the purchase and sale through the use of futures means to hedge every day to achieve the purchase and sale of closed,So that the company earn the corresponding processing fees,so as to sound management,enhance the competitiveness of the company.However,due to the overall closure of the purchase and sale of the overall level of control in the company’s overall level of risk prevention and control,can not measure the various departments or units of the spot profit and loss,do not have the role of assessment,and the overall closed hedging transactions in the base risk of the transaction effect will be large Based on the above two problems,this paper analyzes the shortcomings of YT futures hedging scheme and puts forward the relevant coping strategies.In order to meet the static assessment of the various departments or units in the purchase and sale of finance,this paper,on the basis of the idea of the overall closure,derives the small closed and small closed tools as the assessment tools,And the company’s overall closure there is a certain relationship,rather than independent existence.At the same time in the overall hedging transactions still need to take into account the basis of the problem,because the nature of hedging is the risk of price fluctuations into the base risk.It is suggested that the Company will change the difference risk into the premium,the purchasing coefficient and the contract monthly risk by changing the purchase and sale price.By reducing the purchasing coefficient,increasing the premium and the premium and controlling the contract monthly difference,Thus making the hedging effect better.In other words,on the basis of YT’s hedging program,this paper is dedicated to optimizing a set of effective hedging programs for use by the company,while optimizing the risk of price volatility while optimizing the closure of the program Sub-assessment and the basis of the risk of risk,through the sub-assessment to find out the pain in the business and improve the improvement,and through a series of optimization measures to control the risk of basic differences,making the hedging closure program more effective.