Capesize

13750

May-17
450.00 3.38%

Panamax

8300

May-17
-200.00 -2.35%

Iron Ore

61.5

May-17
-0.50 -0.81%

Sing 380

292.65

Jun-17

Coking Coal

177

May-17
1.00 0.57%

Nola Urea

172

May-17
3.00 1.78%

Trade Iron Ore Options


Why trade Iron Ore Options?

As iron ore futures become established as a fully liquid market, the next wave of risk management products is emerging in this exciting new commodity class.

The jump in iron ore swaps trading volume over the past five years has led to a rapid expansion of iron ore options volumes, an indication of the need to hedge against increasing volatility in iron ore prices.

And unlike futures, options have limited risk in that the holder of the option is only exposed to the premium of the contract.

"The next wave of risk management products is emerging in this exciting new commodity class."

A cost-efficient means of hedging

Iron Ore Options are also of increasing interest to traders with exposure to the physical iron ore market as they can be efficiently tailored to physical positions and can provide a cost-efficient means of hedging.

The emergence of iron ore options has been reinforced by the availability of clearing, at NOS or via CME.

Iron Ore Market Useful Links