Natural Gas Hedging
The picture below shows NYMEX futures prices of natural gas for Jan-2014 and Jan-2016 as of 12/20/13. As we can see, the volatility when getting closer to the settlement month (Jan-2014) is much higher than farther away (Jan-2016). In order to hedge under this market conditions, where prices suddenly change, the buyer must be quick and accurate (monthly volumes).
ChancesR® – Hedging Master is the result of years of hands-on experience purchasing natural gas under these market conditions. It was designed for users of natural gas, and not speculators or traders. ChancesR® – Hedging Master allows the buyer to perform multiple hedgings in a short period. Because the system updates the unhedged volumes after each hedge, the buyer will never purchase more gas that is needed.