Commodity Futures Contracts
A commodity future is an exchange-traded contract - an agreement to buy or sell a specific instrument at a pre-determined price for delivery or cash settlement in the future. Futures contracts detail the quality and quantity of the underlying product and may call for physical delivery, or may be settled in cash. Futures exist for many commodities; among them are metals, agricultural products, financial indices, interest rates, foreign exchange and energy products. These contracts are highly liquid, price transparent and traded on a variety of exchanges worldwide.
Our Expertise
Futures contracts are one of the most fast-paced and sophisticated financial instruments available today, and are not necessarily appropriate for all investors. Managing this type of investment requires the work of dedicated and experienced professionals. At ScotiaMcLeod, we have several dedicated Futures Specialists who successfully serve individual and commercial clients in this unique area of the financial services industry. ScotiaMcLeod Futures Specialists work with individual investors, financial advisors, commercial and corporate banking, and others to identify whether or not a futures strategy is appropriate. Where they are deemed an appropriate strategy, our specialists help to integrate a customized futures solution and ensure the overall plan stays on track.
Hedge Management Group
Virtually all businesses can be exposed to some form of price risk. Price fluctuations regularly impact the cost of energy, base and precious metals, currencies, interest rates, and agricultural goods. These changes in price - sometimes quick and dramatic - can have an unintended negative influence on profit margins and overall performance.
The ScotiaMcLeod Hedge Management Group develops risk management strategies using commodity futures. By buying or selling futures contracts one can "lock in" a future price at which to sell or buy a specific commodity. In doing so, this ensures that particular purchase or sale will not be impacted by any adverse swing in the specific commodity price.
Strategic use of futures contracts has proven to be one of the most effective ways to manage pricing risks. As a leading provider of price management and commodity solutions, the ScotiaMcLeod Hedge Management Group provides specialized hedging services for a diverse group of clients across the Scotiabank Group.
Within our expertise we have several product groups, including:
- Energy
- Metals - Base & Precious
- Currencies
- Interest Rates
- Stock Indices
- Soft Commodities
- Livestock
- Grains
Examples of our areas of specialty where we have developed solutions for existing clients:
- Airlines
- National retail chains
- Importers/exporters
- Manufacturers
- Oil companies
- Grain elevators and farmers
- Logistics companies
- Lumber producers and wholesaler
Futures Specialists
For more information regarding our futures offering, contact your ScotiaMcLeod advisor, or the National Product Manager at (416) 945-4656.
You can locate a ScotiaMcLeod advisor near you by using our Advisor Locator.
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