Affected by multiple factors such as the epidemic, changes in the market structure have intensified since the beginning of this year, and companies are facing increased price volatility, continued inventory accumulation, and increased credit risk. In this context, the use of "online basis trading" for forward procurement and risk position management has become a new choice for enterprises. Enterprises have a greater need for understanding the practical application of basis trading strategies in actual trade.
To this end, with the support of DCE, a training conference on the theme of "The Application of Basis Trading in Synthetic Resin Trade" sponsored by Huatai Futures and co-organized by Huatai Great Wall International Trading Co., Ltd. was held in Hangzhou. The conference invited Zhejiang Mingri, Synthetic resin traders on basis trading platforms such as Jiayue, Silian, etc., senior experts from leading companies in the polyolefin industry in East China and North China, and representatives of nearly 30 companies including upstream and downstream companies in the polyolefin industry chain and some investment companies participated in the basis Discussion on trade-related topics.
Nie Haitao, assistant to the president of Huatai Futures and chairman of Huatai Great Wall International Trading Co., Ltd., said in a speech that basis trading is a better tool and means to avoid violent price fluctuations and income uncertainty. The nominal amount of resin transactions accounted for a relatively high proportion of the total nominal amount of transactions on the platform, reflecting strong market demand.
In his view, as the products listed on my country's futures market become more and more perfect, a large number of hedging and arbitrage opportunities will be derived, making market transactions more active, and making market prices more reasonable. "This transformation provides more favorable conditions for industrial enterprises to use the futures market for risk management and promote the further promotion and application of basis pricing."
Participants also discussed the polyolefin industry through relevant introductions to the basis trading platform business of DCE, basis analysis and market opportunities of polyester and polyolefin varieties, as well as traders’ own experience in participating in exchange basis trading. Potential influencing factors of future prices and the trading model for the reasonable use of OTC derivatives.
Among them, the relevant person in charge of Huatai Great Wall International Trade shared a case of using basis trading platform to "buy basis". This case makes use of the openness of the basis platform quotation, through the comparison of the spot market trade basis and the basis trading platform real-time basis quotation, combined with the market background at that time, while signing forward pre-sales in the spot, the basis transaction The purchase of corresponding commodities (ie corresponding basis) on the platform has achieved the purpose of locking in sales profits in advance.
Source: Chemical Network