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Technology Is Critical for Hedging and Trading in Energy Markets

May 4, 2023

Via: PowerMag

The world is currently going through a major shift toward clean energy, triggered by concerns over climate change, depleting resources, and energy security. The energy transition is a massive undertaking, requiring significant investment and a long-term vision. However, as with any transition, there are challenges and uncertainties, and this is where hedging and trading come into play.

Hedging is a risk management strategy that involves taking positions in the market that offset the risks of an existing position. Hedging can be done using a variety of instruments, including futures, options, and swaps.

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