Determining Futures 'Hedging Reserve' Capital Requirements

Steven Blank ()

No 244960, WAEA/ WFEA Conference Archive (1929-1995) from Western Agricultural Economics Association

Abstract: A model for determining funding requirements for uninterrupted operation as a hedger is presented. Hedging marking-to-market requirements are reduced as cash market liquidity increases and basis risk is reduced. Yet, trading limitations hedgers face raise funding requirements. Therefore, some hedgers' funding requirements are higher than those of speculators in the same market.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 9
Date: 1989-07
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Persistent link: https://EconPapers.repec.org/RePEc:ags:waeaar:244960

DOI: 10.22004/ag.econ.244960

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