Hedge Risk With Fixed Cost

Hedge Risk with Fixed Cost

“The purpose of Caresoft Services is to assist our clients in establishing and achieving specific hedge goals in a non-speculative manner with an optimal cost to benefit ratio using sound and proven methods.”

Successful long term hedging requires logical decision-making. Any rational program must consider underlying market structure and longer-term behavior to find points that minimize risk and maximize the results of a hedge plan. It is also important to find the best balance for your company between budgets oriented goals and achieving better than market prices.

Caresoft’s HedgeModel, for either producers or consumers, identifies statistically high and low points at which to fix prices or buy options and allows for some discretion.

Customized For Risk Appetite and Goals

Hedging is like politics or religion - your definition of hedging is determined by you. Our role is to help you to implement a strategy to reach your goals. Some of our clients wish to hedge in order to meet budget in the most cost effective way possible, while others believe that hedging means only capturing attractive prices when the odds are that the hedge will add financial benefit over and above transacting business at market. Our HedgeModel has already been customized to fit a wide range of risk appetites, from an aggressive, purely budget driven agenda to a more conservative market driven plan.

Hedging costs money. The main benefit of hedging activity is to reduce the risk of the portfolio. This benefit must be compared to the hedging cost. With the increased commoditization of global derivatives markets, Industry service provider are losing much of their pricing edge, a phenomenon that makes paying for outside hedging more difficult. At Care soft Inc; we have a solution to this risk with advantage of the natural hedges within the portfolio. We offer fixed cost for our services.