BrainEx creates structured solutions for a wide range of client objectives. Professional, well researched inputs facilitate the building of unique derivatives that optimize returns in order to build long term treasure or short term financial nest.

Hedging is basically an application of investment techniques to minimize risk in a portfolio. Over past few years, Future & Options segment has emerged as a popular medium for trading in financial markets. We empower our client by being an ‘Advisor' - giving him relevant information that is easy to understand and timely to execute to meet his investment goals.

BrainEx customizes offerings to address specific financing needs through our derivative structuring expertise achieving a low cost of capital, minimizing dilution and maximizing equity credit.

Hedging in Derivatives

Imagine not having to worry about which direction the market might be headed.

Sophisticated trading strategies and instruments, such as derivatives that include options securities, are designed to provide this layer of protection. Options are financial instruments that, for a price, give investors the right to buy or sell a security at a given price before the expiration date. These financial securities can be applied to a host of different asset classes, including stocks, bonds and commodities, among others.

Our trading strategy is designed to generate profits regardless of the overall direction of the stock market. We work diligently to produce gains each month and attempt to generate a very consistent return over the course of year. Our primary investment strategy for options writing model is to sell (write) options on futures contract. A corporate can simply get an exposure against their Equity portfolio or against their FD and Bank Guarantee to trade in Derivatives. The options trading strategy is flexible enough to profit in rising markets as well as declining markets and can capitalize on the market’s volatility. Essentially, the market can move up, down, or sideways within a specific range and still produce profits at, or as it nears, option expiration.

Hedging in currency

Currency market is the largest and one of the most liquid financial market in the world. It is the arena in which a nation's currency is exchanged for that of another at a mutually agreed rate.

Enhance your portfolio with a global asset class

Currency Futures has evolved into a reliable asset class due to its deep liquidity, relatively low volatility and low-cost per trade. Volatility in the value of national currencies powers the currency derivatives market. It offers an opportunity for investment besides hedging forex risk. Currency futures operate similarly to traditional stock and commodity futures. There are many advantages to using them for hedging as well as speculating. While they can be used to hedge against currency fluctuations.

Benefits of Currency Futures

» High Liquidity
» Extended trading hours - 9 am to 5 pm
» Opportunities to reap benefits owing to a highly dynamic market

Hedging in commodities

In the last few years, the Indian market has opened a plethora of opportunities for traders and retail investors to participate in commodity derivatives. Commodity derivatives have an immense potential to become a very profitable asset class for those market savvy individuals who wish to diversify their portfolio beyond bonds, stocks, shares and real estate. Hedging commodities are physical assets that can provide limited risks with different kinds of trading and futures contracts. If you wish to efficiently diversify your portfolio, BrainEx wealth can provide you with a comprehensive plan of action for hedging in commodities.

Unlike trading shares of stock, almost all futures are bought and sold on margin. Since only a fraction of the face value of the contract needs to be paid upfront, it means that profits and losses are magnified. Commodity returns have historically had low or negative correlations with the returns of other major asset classes, and may be used to diversify a portfolio. Other factors remaining same, diversified portfolios with low aggregate correlation tend to have lower volatility of returns. Therefore, diversification may improve risk-adjusted returns. Geo-political events like wars and supply disruptions due to natural disasters like hurricanes, droughts and floods may impact the supply of, and increase the demand for, certain commodities. Including commodities in a portfolio may act as a potential hedge against certain types of event risks.