EBF 301
Global Finance for the Earth, Energy, and Materials Industries

Summary and Final Tasks - Hidden

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Key Learning Points: Lesson 8

  1. Only licensed Brokers can trade on the Exchange.
  2. Trades have to be conducted with Clearing Brokers.
  3. Marketing and Trading companies provide hedging services for clients.
  4. There are two classes of market participants, “commercial,” or those interested in the physical commodity, and “non-commercial,” or “speculators.”
  5. Most trading is purely for financial gain as only a small amount of contracts are fulfilled in the physical (cash) markets.
  6. “Day Traders” and speculators rely on Technical Charts to predict market price changes.

Now that we have studied the NYMEX, financial derivative contracts, and the order execution, we will learn how these are used by producers and end-users to reduce their price and supply risk, otherwise known as "hedging."

Quiz

Log onto ANGEL and complete the Lesson 8 Quiz (located in the Quizzes, Surveys, Midterm, and Final Exam folder).

Reminder - Complete all of the Lesson 8 tasks!

You have reached the end of Lesson 8. Double-check the list of requirements on the first page of this lesson to make sure you have completed all of the activities listed there before beginning the next lesson. (To access the next lesson, use the link in the "Course Outline" menu at left.)