How Could a Steel Futures Contract Benefit Your Business?




What are steel futures contracts?

A steel futures contract is an agreement to buy or sell steel at a future date. The price and volume of the purchase are fixed at the time of the agreement. This allows the future to be used to hedge or protect against a position. Additionally, it can be used to speculate the future direction of steel. These contracts lock in cost for the duration of the deal. 


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What are the benefits of steel futures contracts?

A futures contract is a great tool to protect against price fluctuations and act as a hedge against losses and market risk. In falling markets cost is set for the length of the deal. Buyers have the benefit of supply assurance as they can purchase now without waiting for market drops. Futures contracts also provide more financial visibility which optimizes financial planning and maximizes the value of your assets.