Economic Derivatives

Economic derivatives are one of the newer forms of hedging mechanism and ICAP is at the forefront of developments.

These instruments consist of options on economics statistics including US non-farm payrolls, ISM retail sales, US CPI and eurozone HICP.

They provide the ability to express views directly without basis risk, avoiding the problem of predicting the number accurately but misjudging market impact. They also allow risk managers to hedge against short-term volatility in longer-term positions, and enable position-takers to profit fully from their views.

ICAP's economic derivatives specialists continuously monitor developments in the global economy and combine this expertise to provide the optimal broking services for customers.

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