Hedging… Is it a do-it-yourself job?

There are many things that you probably should not do yourself. For example, doing your own surgery or trying to perform your own haircut is usually a bad idea.  But there are a few things in life you probably can and should do yourself, with proper guidance of course.

For an Energy Marketer, hedging your contracted sales is one of those things.  In the past, hedging has been seen as somewhat a blend of science and black magic. We often relied upon a few hedging gurus who we all believed could somehow predict the future with some degree of accuracy. Most of us have come to grips with the fact that nobody can predict the future. In fact the definition of hedging contradicts speculation and prediction by its very nature. The problem with the hedging professional community over the years, and still being seen today, is that they lack the vital data needed to responsibly hedge an Energy Marketer’s portfolio.

All hedging portfolios consist of 2 main components: Sales and Hedges. The dealer of course has immediate detailed records and access to their own sales, which in a perfect world should be hedged in lockstep with either paper options or wet barrels.

The missing piece of this process has been solved by Destwin Energy Systems through its ARM (advanced risk management) system. The system connects all of the systemic dots in allowing an Energy Marketer to easily control and manage a supply and hedging portfolio. It also allows an Energy Marketer to seek competitive prices from both wet barrel vendors and commodity traders. Destwin Energy Systems has created a way to provide transparency for all Energy Marketers that have access to this information. Best of all it automates one of the most labor-intensive processes that have traditionally burdened Energy Marketers directly.

Want to take a look?  Just click here for a quick in-depth demo that will change your “hedging and supply” outlook on life!

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