Perfectly Hedged A Practical Guide To Base Metals (eBook)

In the competitive world of commodities trading, the margins are where you can get an edge. 'Perfectly Hedged' simplifies and explains hedging, a subject that is often viewed as highly technical, frequently misunderstood, and is the cause of avoidable, costly mistakes. Through an easy-to-follow, comprehensive book, you will obtain, and importantly retain this key knowledge that is vital to the long-term success of trading firms. Featuring 18 chapters on: 1. Introduction to Hedging 2. What Hedging Is and Why It Is Necessary 3. How Metal Prices Are Determined 4. Hedging in Practice 5. 'The Perfect Hedge' 6. Position Management 7. Physical Shipments 8. How to Become a P&L Generator 9. Hedging Errors 10. Warrants 11. Arbitrage 12. Premium Hedging 13. Foreign Exchange Hedging 14. Spread Cards 15. Initial & Variation Margin 16. Simple Option Contracts For Hedging 17. Price Participation 18. Shanghai Futures Exchange 'This is the first book I have read that walks you through the intricacies of commodity hedging in a methodical, easy-to-follow way. Finally!' Tristan Busch, Founder, Zopco SA

Samuel began his career in 2009 at Trafigura's head office for metals in Lucerne, Switzerland. He quickly became responsible for operations of refined aluminum, zinc, and lead contracts with exposure to Europe, the Middle East, and Asia. In 2010, Samuel moved to Trafigura's US office in Stamford, CT, where he continued in a senior operations role covering refined lead, zinc, and copper contracts, focusing on North and South American business. In 2011, Samuel was promoted to the deals (hedging) desk, where he spent time in the head office in Switzerland before he moved back to run the North American deals desk. Samuel mitigated the outright price, arbitrage (CME/LME), and spread risks for the North and South American refined and concentrates markets across all base metals and FX exposures. In January 2012, at age 24, Samuel was promoted to become one of the youngest physical traders in Trafigura's history. During this time, he built out and traded the refined lead and zinc books for the domestic US market. He later added the South American refined lead and zinc books to his portfolio. With global exposure to imports and exports, along with building a domestic book of over 300,000mt/annum, Samuel increased the book size by 500% across his tenure at Trafigura. Following Trafigura's acquisition of Nyrstar, Samuel played a pivotal role in the marketing and integration of the Nyrstar Clarksville Zinc smelter. In November 2019, Samuel moved to join Greenwich Metals Inc (GMI), where he built and ran the derivatives desk from the ground up. He provided an internal brokerage to hedge the entire physical book of GMI, mitigating the group's risk across refined base metals, scrap metals, concentrates, precious metals, and FX. He built a successful prop trading book and took speculative positions across base metals on both the LME and CME exchanges, FX, and precious metals. He combined his knowledge of fundamental trading, and quantitative, systematic trading, to develop both long and short-term strategies to generate significant returns. While at GMI, he was a member of the risk committee and held company-wide seminars on managing risk across various futures exchanges and products. Samuel has a proven track record of building excellent relationships with clients, brokers, banks, and traders across the physical and derivative metal markets. His continued YOY results over the past 15 years are a testament to his abilities as a trader and the dedication of his craft. In November 2023, Samuel took his 15 years of trading knowledge and created Perfectly Hedged LLC. Perfectly Hedged is a consultancy and training firm that simplifies and explains hedging; a misunderstood subject that is often viewed as highly technical, and is the cause of avoidable, costly mistakes. Samuel authored a book, 'Perfectly Hedged A Practical Guide To Base Metals', a comprehensive look at hedging in commodity firms. Unlike other industry literature, it is targeted to middle and back office staff, and utilizes real-world scenarios that employees will encounter on a daily basis. By pairing his book with tailored, interactive, in-person classes, employees will obtain -- and retain -- key knowledge that is vital to the long-term success of trading firms.