For future reference, use this list of key points about financial swaps and how they can be used with pre-buys and spot buying to manage price risks.

Speculation requires vigilance in monitoring the position. If it isn’t performing as expected, then the prudent step might be to close the position.

Hedging is the easiest way to use financial swaps, but we can also use swaps to capture an opportunity that may be present in the market, says Mark Rachal of Cost Management Solutions.

Financial swaps are risk management tools. When used properly, they are true hedges that provide predictable results for supply purchases.

Mark Rachal explains the process of delivering physical supply to the customer and settling financial swaps to show how the two work together.

Learn how a propane retailer can use a financial swap to provide a fixed price to a customer for months or even years in advance.