0

My energy contract will be renewed at the end of the year. The extremely large increase in the natural gas price means that I'm not going to opt for a fixed energy price for several years, I'll instead opt for flexible rates, which means that the energy company can adjust the natural gas price after 6 months. I then want to insure against an unexpected hike in the gas price after half a year. This requires a contract on a futures market for natural gas, but I can't find such a market where contracts for some fixed gas price are traded.

7
  • 2
    Is this really about your personal finances? Commented Oct 4, 2021 at 1:21
  • 2
    AFAIK the futures contract usually work in numbers way above the typical household consumption; IIRC eggs contracts were of 1 million eggs each contract. So you would enter a far higher risk in the futures market that you would be insuring against. And of course, being an small fish without knowledge of how the market works seems like a perfect opportunity to lose money, even if the market is profitable in general (remember that in last May/June it was in the news that some future oil contracts were sold at negative prices).
    – SJuan76
    Commented Oct 4, 2021 at 8:54
  • 2
    @BrianBorchers If the goal is to hedge your own electricity price then I think so! Commented Oct 4, 2021 at 10:22
  • @SJuan76 if you perfectly hedge your own electricity price the result will be spending a fixed price on electricity. The risk of losing money is the chance that the electricity price will be lower than what you locked in. Commented Oct 4, 2021 at 10:23
  • 1
    Related: Can I hedge my household expenses using the financial markets?
    – Flux
    Commented Oct 4, 2021 at 16:23

0

You must log in to answer this question.

Browse other questions tagged .