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consumption hedge
A consumption hedge:
As a trader, for the most part hedging should be uneccessary unless you're employing some sort of an arbitrage starategy.
But as consumers, we bear the brunt of commodity price changes every day, directly out of our pockets (not floating PL). We suffer these losses daily with no control.
I have to buy gas and food.
So why, as a trader, shouldn't I investige methods to hedge my exposure? What if, I were to simply look to breakeven?
To lock in todays price, forever?
The question is asked because I exploring natural gas options to offset future-price-increases for a business application, reduce large downside risk, and essentially make in the market, what I lose at the pump (in % price change), or vice versa. Either way I'm net flat.
Any thoughts?
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