The "Point Price" Hedging Of PTA Futures Trading

That is, terephthalic acid, widely used in chemical fiber, light industry, construction, electronics and many other fields.

At present, the PTA industry chain links with the advantage of its own advantages to achieve win-win situation, and spot trading mode has become the highlight of the business mode.

According to the relevant director of Zhengzhou commodity exchange, spot price refers to futures in a month.

Based on the valuation basis, plus or minus the consensus of the two sides, the two sides will determine the paction price of spot commodity prices.

Futures spot price trading is a process of combination of futures and pactions.

The purchaser can complete the spot price from the futures disk within the prescribed time limit.

"In the current PTA market, there are not only warehouse receipt repurchase, but also point price paction hedging mode. We do business more conveniently than before."

Speaking with reporters about PTA trade, Zou Jinlong of the Ministry of chemical engineering of Peking University Founder Group has been very impressed: "since there has been a spot price paction hedging mode, the PTA trade volume of the company has shown a" geometric "growth in recent years, so the operation of such volume has never appeared before.

As the largest PTA producer in China, Zhejiang Yisheng Petrochemical Company is more sensitive to the spot price of PTA, and often uses the point price hedging mode to avoid market risks.

Wu Zhong, vice manager of Yisheng Research Center, told reporters that the price of PTA1609 contract rose to 4950 yuan / ton in July 4th, when the spot price was only 4830 yuan / ton, and the base difference between spot and spot was 120 yuan / ton.

They judged that there was a downward trend in the market and there were reasonable hedging points. The two sides agreed that if futures prices reached 4600 yuan / ton (spot price), they would be liquidated.

So Yisheng Petrochemical was sold at a price of 4950 yuan / ton, and then closed in July 26th at 4600 yuan / ton, and the net profit was 350 yuan / ton, while the spot was reduced from 4830 yuan / ton to 4550 yuan / ton in July 26th, and it lost 280 yuan / ton.

Through the point price hedging mode, the spot stock in general profits 70 yuan / ton, effectively avoiding the risk of enterprise operation.

According to the relevant person in charge of Yihui Resources Holdings Limited, the price of PTA futures in the past market is not very high, but now the whole PTA industry chain is basically priced with reference to futures prices, and the forward price model is also basically linked to futures prices.

"Point price mode can effectively evade the risk of price fluctuation."

The head of the Zhengzhou commodity exchange Zhejiang Yisheng "point" base construction research group said that the spot price linkage is the core and premise of the futures hedging operation, and the correlation between them is as high as 0.98. This means that over 98% of the spot prices fluctuate in the same direction, and this has laid the foundation for the "spot price mode" operation.

The operation of point price mode requires the upstream and downstream enterprises to buy or sell in futures market. The essence of this operation is to buy (sell) hedging, and the price standard after signing the contract is for the sake of letting.

The hedging effect is optimal and the base risk is minimized.

"For enterprises, point price mode can relieve the pressure of business level.

Because the futures market has a perfect physical delivery system, enterprises that meet the requirements can apply for physical delivery through the Futures Company.

If we fail to find the corresponding buyers and sellers in the position of holding positions, the enterprises can pfer the property right through the spot price mode of the futures market.

Zhejiang Yisheng Petrochemical Company Limited said.