What is Hedging: As per the business directory, Hedging is a risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities. In effect, hedging is a transfer of risk without buying insurance policies. Hedging is done by the various risk derivatives. To understand this, it is important to first understand the basics of risk derivatives.
Broadly speaking there are two types of risk derivatives. Exchange traded and over the counter derivatives. As the name suggests, exchange traded derivatives are traded in the international exchanges (for example New York Mercantile exchange, NYMEX), where standard contracts, terms of which have been defined by the exchange are traded.
Over the counter (OTC) derivatives are traded through dealers and the contracts are tailor made. OTC derivatives come with the risk of other party not fulfilling his obligations.
In the trade exchange, future contracts and Options contract derivative are normally traded and Oil/gas companies choose these two hedging contracts.
To understand these hedging techniques, assume that I am oil/gas Production Company and I am producing 100000 barrels in a month. Today’s crude oil price is $80/barrel. I am afraid that by next month , when I will have inventory of around 100000 barrels, the crude oil price may fall to below $75/Barrel, and I might make a loss of $500000 compared with today’s crude oil price. Lets see how I can use hedging to reduce this loss.
1. Future and Forward contracts:
(The fundamental difference between future and forward contracts is that one is traded in exchanges while other is traded OTC, here I will discuss Future contracts).
“Future contracts between two parties A & B is a contract where party B has the obligation to deliver a commodity on agreed date and party A has the obligation to pay on same date the price, which is agreed today”.
So in my case I am party B and in a future contract with A today, I agree to deliver 100000 barrels of crude oil on 11th Dec 2014 and party A agrees to pay the listed price for Dec 2014 in the trade exchange (say NYMEX). Let us assume the listed price for Dec 2014 is $81/Barrel. It is important to note that I do not have to actually (physically) deliver the crude oil to party A.
Now in Dec 2014 when I have produced 100000 barrels of crude oil. Lets consider two scenarios
Scenario 1: Crude price drops to $75/barrels as expected by me.
In the Physical market
I sell 100000 barrels of crude oil @ $75/barrel to get $7500000 where as I had expected $8000000 so I incur loss of $500000 in the physical market.
In the Future contract
My obligation is to deliver 100000 barrels of crude oil which in dec 2014 will cost me $7500000 @ $75/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make profit of $600000.
Net profit I make is $600000 (Future contract) – $500000 (Physical market) = $100000
So I have hedged the crude oil price with future contract.
Scenario 2: Crude price increase to $82/barrels.
In the Physical market
I sell 100000 barrels of crude oil @ $82/barrel to get $8200000 where as I had expected $8000000 so I have profit of $200000 in the physical market.
In the Future contract
My obligation is to deliver 100000 barrels of crude oil which in Dec 2014 will cost me $8200000 @ $82/barrel. But party A has the obligation to pay me @$81/barrel so total of $8100000. This way in the future contract I make loss of $100000.
Net profit I make is $200000 (Physical market) – $100000 (Future contract) = $100000
So in both case of crude oil price reducing or increasing, I have made more money than I had expected in Nov 2014. With different number, it might also show some loss, even with future contract but the loss will be much lesser than what would have been incurred without hedging.
2. Hedging by OPTIONS Contract
There are two types of options contracts. Call & Put.
The relevant contract for me as Oil/gas production company will be PUT options.
“When I buy PUT options contract from another party (say party A), I have the option to sell my commodity (crude oil in this case) to party A at a particular price but I am not obliged to do so. It is upto me, if I want to exercise my option to sell my commodity to party A. My this right has an expiry date and I can use my option on any date before the expiry”.
Off course I will only exercise my option if the price of the crude oil has decreased and not if the price of crude oil has increased. However to buy this right (option contract) I have to pay a premium to party A.
Let us assume that I buy “Put option contract” from party A at lock in price of $80/Barrel for crude oil. Table above shows, how after using “Hedging by Options contract”, I do not incur any loss even when the price of crude oil has fallen from $80 to $70.
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Capt. Rajeev Jassal has sailed for over 24 years mainly on crude oil, product and chemical tankers. He holds MBA in shipping & Logistics degree from London. He has done extensive research on quantitatively measuring Safety culture onboard and safety climate ashore which he believes is the most important element for safer shipping.
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The notification was a gut punch: my digital wallet, drained. 1.8 BTC and 12 ETH my life’s savings vanished into the blockchain’s immutable ledger. Immutable. The word haunted me. The police offered sympathy, not solutions. Desperate, I found Cyber Codex Revolution. Skeptical but out of options, I hired them. Their agent, a calm voice named Eli, explained their process wasn’t magic but “digital forensics meets algorithmic pursuit.” They deployed proprietary tracing software, mapping the thief’s path across the blockchain’s transparent labyrinth. Within 72 hours, they had a report: the funds were sitting in a seemingly anonymous exchange wallet. Cyber Codex leveraged their established relationships with global exchanges, presenting irrefutable proof of the theft. The freeze order was issued instantly. I watched, stunned, as my coins were returned to my secure, new wallet. The revolution wasn’t just in recovering the lost; it was in proving that even in the decentralized wild west, justice could be coded. Hire Cyber Codex. They are the guardians the digital age demands. Email: (Cybercodexrevolution@mail.com) Telegram: @cybercodexrevolution Whatsapp:+393-350 903 6825
My name is Michele Gonzalez, and my journey from despair to redemption began when I lost $386,880 to a fake crypto investment platform. Lured by promises of high returns, I invested my life savings, only to see the website vanish overnight. Heartbroken, I sought help from online recovery firms. The first, CryptoSafe, demanded $6,000 upfront and disappeared. Another, BlockTrace, took $8,500 with fake progress reports. Three more scams drained $15,000, leaving me hopeless and ashamed. Years of hard work as a nurse were gone, and I faced a bleak future.Desperate, I scoured forums like Reddit’s r/cryptoscams. A post about Alpha Spy Nest, a team of cyber forensic experts, caught my eye. Their site, alphaspynest.org, detailed success stories, but I was skeptical after my betrayals. With nothing to lose, I emailed at alphaspynest@mail.com. Their response was prompt and professional, asking for transaction IDs, wallet addresses, and scam details. Unlike others, which eased my fears. Alpha Spy Nest’s team, blockchain analysts and cyber investigators, sprang into action. They used advanced forensic tools to trace my funds through complex blockchain transactions, navigating mixers and anonymous wallets. They kept me updated: We’ve identified a lead wallet. Their expertise shone as they collaborated with law enforcement and exchanges to freeze suspect accounts. After weeks of relentless work, negotiating with the platform, they secured a breakthrough. One morning, I received their email. Funds recovered. Tears streamed as I saw $350,000 back in my secure wallet. Alpha Spy Nest restored not just my money but my hope. Their transparency and skill turned my nightmare into triumph. They gave me my life back. Their expertise, from blockchain analysis to legal coordination, turned my nightmare into a miracle. I’m forever grateful to them. If you’re scammed, skip the fakes. Contact Alpha Spy Nest or WhatsApp +15132924878. They’re the real deal.
Testimony: \"My Dad\'s Lost Bitcoin Was Recovered After 12 Years – Thanks to CLOUDSTRIKE \" Earlier this year, we came across an old notebook with a partial 9-word seed phrase and a reference to a “Bitcoin wallet – Electrum.” We also found a non-working laptop from around 2013. He had once mentioned buying Bitcoin back then, but we assumed it was a passing interest. Clearly, it wasn’t. The problem? The laptop was unreadable, and the seed phrase was incomplete. After failed DIY attempts, we reached to a company specializing in digital asset recovery and seed phrase reconstruction( CLOUDSTRIKE CYBERSECURITY COMPANY ) . From the beginning, they were professional, transparent, and highly responsive. Their team recovered and decrypted data from the damaged laptop, analyzed old wallet files and metadata and also used proprietary tools to reconstruct the missing seed words Within three weeks, they successfully recovered the wallet: 17 BTC—worth over $1,600,000 at the time. Thanks to CLOUDSTRIKE , we recovered not just digital assets—but a part of my father’s legacy. The funds helped us pay off our family home, invest in the future, and support a cause he cared about. If you\'re locked out of a wallet or missing a seed phrase, I highly recommend CLOUDSTRIKE CYBERSECURITY COMPANY and they can be contact through their E-mall address which is ( Cloudstrikecyber@gmail.com) WhatsApp:+1(260)408-3923 Their expertise is rare—and real.
My name is Noya Yonatan, The sinking feeling is unforgettable. One mistaken click on a sophisticated phishing link, and my life savings of $300,000 in Ethereum was gone. The transaction hash was a permanent, taunting scar on the blockchain. I felt hopeless; everyone said crypto, once stolen, is impossible to recover. Desperate, I contacted Cyber Codex Revolution. Their calm confidence was my first glimmer of hope. They explained they don’t see the blockchain as an immutable ledger of loss, but as a map of digital breadcrumbs. Their team of ethical hackers and blockchain analysts sprang into action. Using advanced on-chain forensic tools, they traced the convoluted path my funds took through a maze of wallets and mixing services, a trail I believed was intentionally erased. They identified the final holding address and, crucially, the centralized exchange the thief was using to cash out. Leveraging their established relationships and legal expertise, Cyber Codex immediately filed a detailed report with the exchange’s security team, providing irrefutable proof of the theft’s path. The exchange complied, freezing the assets. Within 72 hours of my first call, the impossible happened. My Ethereum was returned. The Cyber Codex Revolution didn’t just recover my funds; they restored my faith in the security of the digital frontier. They are true pioneers. you can also contact them if you have been a victim of this circumstance. Telegram: @Cbyercodexrevolution Email: Cybercodexrevolution@mail.com Whatsapp: +39-350 903 6825
It all began in the summer of 2024. I was caught up in the excitement of the cryptocurrency boom and thought I had found a great opportunity. I came across a seemingly legitimate investment platform that promised sky-high returns. After researching the website, reading positive reviews, and talking to a few people who seemed to have had success, I decided to invest $93,900, all the savings I had put aside for years. I was convinced I was making a smart move.But as time passed, I started to notice small inconsistencies. The platform’s customer support was slow and unresponsive. The withdrawal process became more complicated, and the success stories began to feel too rehearsed. One day, the website went down, and I couldn’t reach anyone. Panic set in. I had no way to access my funds, and deep down, I knew I had fallen victim to a scam. I was devastated. The money I had worked so hard for, the nest egg for my family’s future, was gone and I felt powerless. That’s when I heard about Alpha Spy Nest, a recovery service that specialized in tracing and recovering lost investments. At first, I was skeptical. The chances of recovering my savings felt slim, but I had nothing left to lose. I contacted them. Alpha Spy Nest worked swiftly, their team of experts guiding me through every step of the process. They analyzed my case thoroughly, tracking the scammers’ digital footprints and tracing the transactions. Within a matter of weeks, they identified the network of fake accounts involved in the fraud. It was a nerve-wracking time, but Alpha Spy Nest’s persistence was unwavering.They managed to trace my funds to a hidden account and, through their relentless efforts, successfully recovered $73,900 part of my lost savings.they restored my faith in the possibility of justice in an often chaotic digital world. Contact them via: whatsapp: +15132924878, email: Alphaspynest@mail.com, website: www.alphaspynest.org
For a long period had viewed cryptocurrency as both a horizon of possibility and a landscape fraught with peril. My investment in XRP was meant to be a deliberate and disciplined step toward financial independence grounded in careful research and measured reasoning. Yet despite vigilance I became entangled in one of the most calculated frauds I have ever encountered.The ordeal began with an unsolicited approach from a man who styled himself as a broker. He spoke with eloquence about volatility cycles, algorithmic trading and insider strategies that promised to turn market unpredictability into consistent profit. The platform he introduced appeared impeccably crafted with real-time charts, seamless dashboards and a professional façade designed to inspire confidence. His promise was irresistible: daily profits, exponential growth and supposedly guaranteed returns. Though instinct urged caution, ambition and misplaced trust compelled me to transfer $85,000 worth of XRP.At first the illusion was flawless. My balance multiplied at a dizzying pace supported by polished reports and reassuring communication. I convinced myself I had made the right decision. But the moment I tried to withdraw the deception unraveled. Excuses surfaced such as verification delays, system maintenance and compliance reviews. The pretexts grew increasingly elaborate until without warning the entire platform disappeared. My login failed, the website dissolved and the so-called broker vanished into digital oblivion. My funds were gone.The financial blow was heavy but the deeper wound was humiliation knowing I had been manipulated so completely. In my desperation to find recourse I discovered PYRAMID HACK SOLUTION. Unlike the fraudsters their team projected candor and expertise. They offered no grandiose guarantees, only a clear plan of action: trace the stolen assets across the blockchain, analyze wallet addresses and engage with exchanges to intercept and freeze funds before they vanished into anonymity.Their pursuit was methodical. Using advanced forensic techniques they followed every digital footprint, identified laundering attempts and compiled evidence robust enough to withstand scrutiny. They kept me informed at every stage, never exaggerating progress, only presenting facts. Weeks later against all my expectations PYRAMID HACK SOLUTION succeeded in recovering $70,000 worth of XRP. Though not the entirety of my loss it was an extraordinary victory and proof that justice in the digital wilderness is still possible.This reshaped my perspective. In cryptocurrency greed is the trap and vigilance the shield. Yet with the right expertise recovery can be achieved. Website; https://pyramidhacksolution.com WhatsApp; +447401467910 For their relentless dedication, integrity and results I remain profoundly indebted to PYRAMID HACK SOLUTION.
It was a rainy evening in Istanbul, a year ago, when my world imploded. I\'m Shehbaz, a software engineer who\'d scrimped for years to build a nest egg 249,299 euros, my ticket to freedom from endless overtime. A colleague tipped me off about Quantum Gains, a crypto trading platform boasting 300% returns. The app was sleek, the charts hypnotic. I dove in, transferring chunks via wire and crypto swaps. At first, the gains rolled in, fake dopamine hits that blinded me to the red flags. Then, poof. The dashboard froze, support ghosted, and my balance read zero. Scammers. I\'d been had. Nights blurred into despair. I pawned my watch for rent. Sleepless, I stalked forums, falling into recovery scams that drained another 5,000 euros. Rock bottom hit when I confessed to my wife, Aisha her silence was louder than screams. We were drowning. That\'s when, in a crypto subreddit haze, I saw it: a whisper about Alpha Spy Nest. Not a flashy firm, but a shadow collective of ethical hackers and forensic wizards. Skeptical, I emailed them. They replied. They weren\'t miracle workers; they were surgeons. Their lead analyst dissected my transaction logs. Your funds bounced through three mixers to an Eastern European exchange, they said, screens flickering with blockchain maps. Alpha Spy Nest\'s toolkit custom scripts, AI tracers, unraveled the obfuscation in days. They ID\'d the wallet: tied to a Bulgarian syndicate, dormant but laundered via fake NFTs.Then the call, Shehbaz, it\'s done. 249,299 euros, wired to your secure account. Minus our 15% standard for ops like this. Tears came. Not just cash, but closure. They even shared a dossier on the perps, enough for my lawyer to sue remnants. Alpha Spy Nest didn\'t just claw back my savings; they pulled me from the abyss. In a digital Wild West, they\'re the quiet guardians, ethical, relentless. If shadows swallow you, reach out via: website: www.alphaspynest.org, email: Alphaspynest@mail.com. They came through for me.
After what felt like a nightmare of losing 2 BTC due to a scam, today the marks triumphant moment when those funds were fully recovered and transferred back into my Trust Wallet—all thanks to TROY HACKS CYBER SERVICE When my wallet was hacked, and my cryptocurrency stolen was, I feared that my substantial investment was always. However, TROYHACKS CYBER SERVICE provided a lifeline that restored not just my funds, but my peace of mind. The recovery process started with a thorough assessment of my case. After I explained how my wallet had had compromised, TROY HACKS CYBER SERVICE team immediately got to work. They used advanced blockchain tracking technologies to follow the trail of my stolen my Bitcoin through various exchanges and accounts. This level of expertise in tracing digital complex footprints was crucial in pinpointing the exact location of the stolen assets. TROYHACKS CYBER SERVICE also leveraged partnerships with key exchanges and used legal methods to freeze and retrieve the stolen BTC. Once they confirmed that the assets were recoverable, they worked swiftly to reroute the 2 BTC back to my Trust Wallet. Throughout the whole ordeal, their communication was excellent, keeping me updated on the every progress step of the way. Thanks to TROY HACKS CYBER SERVICE , my 2 BTC is now safe back in my possession, and I couldn’t be more reliefd. Their professional effectiveness and make them the go-to experts for anyone dealing with lost, stolen, or hacked cryptocurrency. You can reach at to them via (Troyhacks@cyberservices.com) WhatsApp: +1(260)237-6241
I never imagined I’d fall victim to a scam. I always thought I was cautious. But one mistake just one moment of trust in the wrong place cost me $133,000. It started with what seemed like a legitimate investment opportunity I found online. The website looked professional, the customer service was prompt, and the profits seemed slow but steady. I didn’t dump everything in at once. I tested the waters. The first few withdrawals went smoothly, and that’s what got me hooked. Then came the rug pull. I tried to withdraw my money, and suddenly everything changed. My account was frozen, support went silent, and the website eventually disappeared altogether. I was devastated. That was years of savings college funds, medical bills, rent money. I was too ashamed to tell my family. I couldn’t sleep. I blamed myself for being so stupid. The weight of losing $133,000 was suffocating. I tried everything filed reports with my bank, spoke to the police, and even reported it to financial watchdogs. Everyone was sympathetic, but nobody could actually do anything. It felt hopeless until someone mentioned Malice Cyber Recovery. At first, I was skeptical. After everything, I had zero trust in anyone. But I was desperate, and I had nothing left to lose. From the first call, the team at Malice Cyber Recovery was professional, understanding, and brutally honest. They didn’t promise miracles they promised effort. And they delivered. They tracked down the digital footprints, coordinated with international crypto exchanges, and used some kind of dark web forensics I still don’t understand. Within six weeks, I got the email I’d been praying for: We’ve recovered your funds. When the money hit my account, I broke down crying. All $133,000 every single dollar was back. I didn’t just recover my finances I recovered my peace, my dignity, and my future. I know what it’s like to feel helpless. If you’re reading this and you’ve lost money online, don’t give up. Malice Cyber Recovery gave me a second chance, and they might just do the same for you. WhatsApp: +61410262541 Email: malicecyyberrecovery@contractor.net
I was locked out of my Ledger wallet after a firmware update and in an instant, years of crypto investments were out of reach. My recovery phrase wasn’t working, Ledger support was unresponsive, and every online ‘solution’ led nowhere. I genuinely thought I had lost everything. Then I found SPYHOST CYBERSECURITY COMPANY and they changed everything. Their team immediately launched a firmware rollback protocol to restore the Ledger to a stable version. Then, using advanced memory snapshot analysis, they were able to extract fragments of cached seed data from previous device states which i didn’t even know was possible. Within 72 hours, my wallet was restored and every single coin was back in my control. These aren’t just tech experts, they’re digital rescue specialists. If you\'re locked out, hacked, or scammed, I highly recommend SPYHOST CYBERSECURITY COMPANY. They’re professional, fast, and absolutely the best in the game. Don’t waste time or risk more loss. Instead, get in touch with SPYHOST . They saved my crypto, and they can save yours too. They can be reached out to through their official E-mail address which is (Spyhost@cyberdude.com)
Two years single in A, I’d poured my heart into crypto, converting 12,500 euros into Bitcoin to build a future. But a phishing scam disguised as a flirty email from a “naval officer”—stole it all. The blockchain confirmed the theft; my wallet was empty. Police were clueless, and loneliness amplified my despair. X posts warned of scams, but one mentioned Cyber Codex Revolution. Hesitant, I emailed [email protected]. They responded: “We’re forensic experts. Send the detail fees upfront. I shared the transaction hash and phishing email. Their team—hackers, coders, traced the BTC through mixers to a shady exchange. “We’ve got a trail,” they messaged. Using legal leverage and exchange partnerships, they froze the funds. After tense negotiations, my phone lit up: “BTC recovered. Check your wallet. My 12,500 euros returned, secure in a new wallet. Cyber Codex Revolution didn’t just save my savings; they restored my hope. Single or not, I learned trust in justice can outshine even the darkest scams.Now, I spread their name proof that in the wild crypto frontier, justice can still win. Telegram @cybercodexrevolution Email Cybercodexrevolution@mail.com Whatsapp: +39-350-9036-825
I lost $87,000 in a SIM swap attack. One moment my phone had service, the next it was dead. Within minutes, I was locked out of my email, my exchange accounts, and my entire crypto portfolio was emptied. The attacker had convinced my carrier to transfer my number, bypassed my two-factor authentication, and moved fast. I felt sick. Years of investing, gone in under an hour. That’s when I found TROJANHACK CYBER SECURITY COMPANY. At first, I was hesitant—there are too many fake recovery “experts” out there. But Trojanhack was different. They were professional, clear, and moved fast. Within 48 hours, they had traced the stolen funds through multiple wallets, identified a key mistake the hacker made, and located the final destination—a KYC-verified account on a lesser-known exchange. They worked directly with the exchange and law enforcement to freeze the account. In just under two weeks, every cent $87,000—was recovered. I don’t usually write testimonials, but Trojanhack earned this. They didn’t over promise. They delivered. If you’ve lost crypto to a hack or scam, don’t waste time rather get in touch with Trojanhack. I got my money back because I called the right people and they can be contacted through their official E-mail address which is ( Trojanhack@qualityservice.com ) Give them a trial as they never disappoint.
A few months ago, I faced one of the most devastating experiences of my life. I had been tricked by a fraudulent online investment scheme that stole $62,300 of my savings. That money represented years of sacrifice, late nights, and careful planning for my future. When it disappeared, I felt completely crushed. I couldn’t eat, I couldn’t sleep, and I kept asking myself how I could have been so blind. I reached out to a few places for help, but most either gave me false promises or no real guidance. Honestly, I was ready to give up. That’s when someone recommended Rapid Digital Recovery, and I decided to give them a chance. Looking back, that was the best decision I ever made. From the very first call, their team treated me like more than just another case. They listened patiently as I explained everything, and instead of judging me, they reassured me that scams can happen to anyone. That gave me a little peace of mind, but what truly stood out was their confidence and professionalism. They knew exactly what steps to take, and they explained the process so clearly that for the first time in weeks, I felt hope again. The journey wasn’t easy, but Rapid Digital Recovery never gave up on me. They worked tirelessly, tracking digital trails, piecing together evidence, and using their expertise to chase down the stolen funds. Throughout the entire process, they kept me updated, answered my countless questions, and gave me the assurance that they were fighting for me every single day. Then came the moment I’ll never forget: they successfully recovered my full $62,300. I was overwhelmed with relief and gratitude. What I thought was lost forever had been restored and with it, my sense of stability and trust. But this testimony isn’t just about the money. Rapid Digital Recovery gave me back my confidence. They reminded me that there are still genuine professionals out there who truly care about helping people. They turned my pain into a victory, and I will never stop recommending them to anyone who finds themselves in the same situation I was in. To the entire team at Rapid Digital Recovery, thank you for standing by me, thank you for your honesty, and most importantly, thank you for proving that recovery is possible. You didn’t just save my finances, you saved my peace of mind. Contact Info Below- WhatSapp: + 1 4 1 4 8 0 7 1 4 8 5 Email: rapid digital recovery (@) execs. com Telegram: + 1 6 8 0 5 8 8 1 6 3 1
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