Commodities - Module 4
Managing commodity risk
Sizing in ticks and contract units, gap risk around inventory reports and supply shocks, and correlation clusters - energy moves together, metals mostly do. Stops sized to the instrument's actual range, not a round number.
9 lessons, about 59 minutes
- 1Risk per trade, in money before ticks6 min
- 2Sizing: from risk to whole contracts7 min
- 3The stop sized to the instrument's range, not a round number6 min
- 4The gap your stop cannot cover keeps a schedule7 min
- 5Sizing for the gap, not the stop7 min
- 6Leverage on a violent instrument6 min
- 7Energy moves together, metals mostly do7 min
- 8Margin calls, and the exit you did not choose7 min
- 9The commodity risk plan on one page6 min