Hedging

Hedging is the process of entering into a trade, contract or other arrangement for the purpose of mitigating risk. This can be viewed as type of insurance.

In the professional precious metals market, for example, it is common to hedge against the risk of price changes in physical inventory. The methods used to accomplish this can vary in complexity.

StoneX Bullion offsets the price risk of its physical inventory by entering into a rolling OTC ("over-the-counter") position using an electronic trading platform called "PMXecute". This proprietary product of INTL FCStone is used by a wide range of companies in the precious metals market.

PMXecute streams prices for precious metals hedging in god, silver, platinum and palladium against a range of currencies via web browser, mobile app and API.