Financial swaps enable quick, accurate price quotes
May 11, 2021 By Mark Rachal
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.
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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.
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Retailers use swaps to capture opportunities, turn unknown future prices into knowns and maintain flexibility to adjust positions when conditions change.
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Mark Rachal of Cost Management Solutions explores some of the advantages of the propane swap market in price risk management.
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Retailers could take swap positions each month from now until winter that would allow them to have near the current price next winter.
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After being in a downtrend since January 2014, propane prices could be at the beginning of a long-term…
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