Risk Management Analysis and Reset Strategy of High-risk Financial Derivatives - A Case Study of Tsingshan Nickel Incident

Yulin Liu (), Yuzhe Sun (), Jiacheng Wang (), Songping Li () and Yihang Yao ()
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Yulin Liu: Zhuhai College of Science and Technology, College of Finance and Economics
Yuzhe Sun: Shanghai Yue Kong Pao School
Jiacheng Wang: University of Saskatchewan, Art and Science
Songping Li: St’Anthony High school
Yihang Yao: University of Illinois Urbana-champaign, LAS

A chapter in Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022), 2023, pp 672-685 from Springer

Abstract: Abstract In this event, Tsingshan's 200000 short orders suffered huge losses due to the sudden sharp rise of nickel price. Therefore, this paper analyzes the current situation of this event and uses the futures fundamental risk analysis method to study the relevant risks of the nickel futures that Tsingshan bought at this time, as well as the role of traders and brokers and risk exposure analysis. Finally, it is suggested that Tsingshan needs to have a good investment strategy when making orders, and Establish a complete risk management system and implement dynamic management of investment risks, so that financial derivatives can better promote investment.

Keywords: Nickel; Futures Risk; Reset Strategy; Broker; Market-Maker (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-098-5_77

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DOI: 10.2991/978-94-6463-098-5_77

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