Research On The Effectiveness And Risk Management Of Commodity Derivatives In Jiaozuo Wanfang

The breakup of the Bretton Woods system,the oil crisis and the market turbulence triggered by them promoted the financial innovation,promoted the level of financial liberalization,and highlighted the important value and significance of risk management for enterprises.Under the impetus of practical demand,the practice of hedging and the research of profit have sprung up quietly.However,because financial derivatives are small margin trading,financial derivatives trading has become a double-edged sword.It can not only gain large profits at a small cost,but also bring large transaction losses to enterprises.The United States subprime mortgage crisis and the European debt crisis,as well as the resulting global financial crisis,make the international economic environment very complex.As a result of the high risk of derivatives trading,enterprises that have suffered large amount of trade losses will be criticized.There have been many failed cases of financial derivatives trading in China,such as the 2008 Eastern Airlines Aviation Oil option hedging transaction incurred 6 billion 200 million yuan huge losses,China Ocean Shipping Index Trading huge losses and so on.On the one hand the enterprise must use commodity derivatives to hedge commodity spot trading price risk,on the other hand,hedging has its own risks,especially if derivatives are used for speculation,speculation and even expand the scale or improper management,enterprises may suffer huge amount of commodity derivatives trading losses.Therefore,it is of great theoretical and practical significance to study the success or failure of hedging of commodity derivatives and the risk control of hedging itself.This paper studies the Jiaozuo Wanfang Limited by Share Ltd uses commodity derivatives hedging effectiveness and risk hedging of Jiaozuo Wanfang itself is how the contents of the two large control,analyzes the unstable situation in the world economy under the background of Jiao Zuowan aluminum futures hedging effectiveness,analysis of the impact of Jiaozuo Wanfang commodity derivatives hedging on the financial performance of enterprises and value,points out the risk types are rich in the case of hedging transactions,the analysis of the risk control measures taken by the case company,finally suggestions are given.