What are freight derivatives?

Freight derivatives are financial products used for Futures for freight transport, financial tools based on forecasts on future transport prices in various markets. People who trade with freight derivatives do not actually exchange transport contracts; They trade with financial products developed by purchasing and trading estimates about transport for transport in the future in the future. These products that were originally developed to allow people in the freight industry to ensure their risks. As a shift of supply and demand, the cost of moving specific types of costs such as dry goods and oil fluctuations. For people in the industry, including senders, suppliers and warehouse companies, this can create potentially serious risks. Purchase of futures contracts allows people to lock the contractual price on the basis of guessing whether freight transport prices will increase or drop in the future. The contract includes the type of cargo, date, route and rate.

For speculators, cargo derivatives provide a number of investors' profits. Buying and selling these contracts, as transport shifts on freight transport allow people to take advantage of market movements. It also creates more liquidity on the market. Futures markets for freight transport can be quite volatile, especially industry, such as contracts including specific ports or specific types of cargo. Speculators can use this volatility on the market up and down with various well -placed investments in cargo derivatives.

Futures traded on the stock exchange and transport agreements are two examples of cargo derivatives. These financial products are traded worldwide on a wide range of markets, including electronic means, allowed people who are at any time involved in the freight derivative market, including after business hours. Information on the direction of the market of derivatives is provided inMany financial publications along with real -time quotes on the website and broadcast media.

The size of the cargo derivatives varies greatly. In general, these products are traded by investors working in large volumes with large accounts and are not so popular among smaller investors. Investors in securing funds have access to cargo derivatives by bringing together investment resources from a group of people and relying on the fund manager to make suitable purchases and at the same time represent the interests of investors in the financial market.