Study On Risk Control Of Q Company Using Nickel Futures To Hedge

As an important variety of commodity futures,metal futures have enriched investors’ investment choices and also provided ideas for metal industry related companies to avoid price risks.By hedging,price discovery and other functions of metal futures market,by carrying out hedging transaction in commodity market,enterprises can effectively control the risk of market price fluctuations and ensure returns,so as to achieve stable development and determine their competitive advantages.However,the futures hedging transaction itself has certain risks,so it is of great significance to control the potential risks in the hedging process.This thesis takes the risk control of Q Company in the process of nickel metal hedging as the entry point,and combines the domestic and foreign literature on determining the optimal hedging ratio and controlling the basis risk,and uses static model,dynamic model and Va R model for quantitative analysis and qualitative analysis.After reviewing the current nickel market situation,the situation of Q Company and its hedging process,the risk control measures in the hedging process of Q Company are analyzed.Through the analysis of the risk control measures in the hedging process of Q Company,it is found that there are some problems in the hedging process,such as unreasonable hedging ratio and contempt for basis risk.Therefore,in view of the existing deficiencies in the hedging process of Q Company,this thesis makes an empirical analysis from the aspects of determining the optimal hedging ratio and controlling basis risk,and puts forward the corresponding optimal design scheme.This thesis puts forward the optimal design scheme from four aspects: Firstly,to optimize the risk control target of hedge;Secondly,to optimize the selection of futures hedging ratio;Thirdly,to optimize the management of basis risk;Finally,the option is introduced for nickel hedging.In order to ensure the improvement of the risk control level in the hedging process of the company,the thesis believes that the following four aspects should be taken into account:The first is to set reasonable hedging goals to avoid blind speculation;The second is to improve the enterprise hedge risk control and supervision system;The third is to enhance the company’s influence in the nickel market;And the fourth is to pay attention to the training of futures hedging professionals.