Case studies
Situations that actually happened, with the numbers. Read for the decision points, not the outcome.
- EnergyPro
A hedge that was not a hedge
A physical gasoil position was hedged with ICE gasoil futures. The hedge was the right size, the right direction, and lost money at the same time as the physical.
- Agriculture
Demurrage that ate the margin
A grain cargo made a healthy trading margin on paper. Nine days of waiting at the discharge port turned it into a loss, and the contract said who paid.
- Energy
The cargo that arrived twice
A West Africa crude cargo was sold onward three times in a week. Two buyers presented bills of lading at the same terminal, both original, both genuine.
- MetalsPro
The warehouse receipt problem
Financing was extended against nickel in a Southeast Asian warehouse. The receipts were in order. The inspection reports were genuine. The metal was not there.