🧠 How Energy Hedging Works

Energy markets are used globally as both trading instruments and macro hedging tools. Within Currency Hedger, energy is integrated into the broader FX and inflation framework to manage price risk, currency exposure, and global economic cycles.

⚡ Why Traders Use Energy Markets

• Brent & WTI – Core global oil benchmarks driving inflation
• Natural Gas – Industrial and seasonal demand exposure
• Heating Oil – Consumption cycle and winter demand hedge
• Oil Markets – Key driver of global macro sentiment
• Energy & FX – Strong impact on CAD, NOK and USD

💱 Currency Hedger Integration

Currency Hedger allows energy markets to be viewed alongside FX and metals exposure, enabling cross-asset hedging strategies:

• Oil exposure linked to commodity currency hedging
• Inflation protection using energy + metals
• Macro risk signals from oil volatility
• Diversification during global market stress

⚙️ Pricing Modes Explained

• Spot – Real-time market pricing
• Futures – Standardised contract valuation
• Notional – Portfolio exposure for hedging calculations