commodity market transactions

turn the volatile commodity prices to your advantage!

  • less volatile, or even stable cash flow
  • decreased dependency on market price changes
  • makes planning ahead easier
commodity market transactions

how we support your business?

  • we offer a wide range of products to hedge your exposure to commodities price fluctuations, including forward, swap and options transactions
  • our dedicated dealers would be glad to think together with you and as your advisor we help you to find the investment solution that best suits you
All the transactions refer to the parameters of the actual underlying commercial contract, but they are managed independently of the corresponding commercial transactions. Thus the transactions are financially settled by net settlement between the parties, against the official settlement prices (typically the average settlement prices calculated with a pre-determined method), while physical delivery continues as defined in the commercial contract. 


You can agree today upon the purchase/sales price of a commodity to be delivered at a particular time in the future.  Whatever the market price of the commodity is upon expiry, your company will buy or sell the commodity at the forward price set as part of the net settlement of this deal.  Your company will thus settle accounts with its partner at the actual price upon expiry when the physical delivery takes place, while there will be a net settlement with the bank for the difference between the forward price and the prevailing market price.

The potential gains and losses on the transaction can be unlimited in theory.  The gains and losses of the transaction can be offset by the balance of the gains and losses of the underlying transaction if the company had identified its underlying exposure and market status properly.  

The aim of these transactions is to stabilize the company’s earnings not to realise a financial profit on a standalone basis.

choose from the options below:​

For a specific period fixed in advance, the client fixes the price at which a given commodity will be bought or sold.  By means of this transaction, the client acquires complete protection against adverse price changes, without, however, being able to profit from advantageous changes. This deal is free of charge. At maturity, there is a net settlement using the average of the market prices recorded in time intervals determined in advance.

choose from the options below:​

swap for buying/selling commodity

option – The buyer of an option acquires a right to buy or sell a given commodity in a period (or at a date) set in advance, at a price fixed in advance. In this sense, an option is a kind of insurance where premium is charged upfront.  If you buy an option, you will enjoy full protection against adverse price changes, and at the same time benefit from a potential favourable turn in the price trend. At maturity, there is a net settlement.

  • European option: for a specific date, net settlement is against the market price available upon expiry
  • Asian option: for a specific period in time, net settlement is against the average of the market prices recorded in pre-determined time intervals (daily) during the specified period

collar – This transaction is the combination of two options, and is usually offered at zero cost. The collar sets a specific price range for the forward or swap price resulting, at one boundary, in protection against adverse price change, and at the other boundary, in a possibility to profit from favourable price changes to some extent.  At maturity, there is a net settlement. The collar can be built up with European or Asian options as well.

choose from the options below:​

adapted to your needs

As one of the key players in the money, foreign exchange and capital markets in Hungary, we want to establish a long-term partnership with you. We are here to formulate your hedging strategy, built on the following products and more, in consideration of your market expectations and the risks associated with your operations 

you should know before you decide

As a precondition for dealing you must have or fill in the following:

  • Treasury master agreement,
  • MiFID questionnaire (for complexity),
  • MiFID2 related documents
  • effective Treasury limit (for deals that require a treasury limit)
  • Active LEI code, EMIR declaration

Other fees and charges:

Any fees applicable to the transactions are specified in the Announcement on investment services.

For exchange rate movements please consult the official page of Reuters.

These documents are not intended as personalized investment advice and do not constitute a recommendation to buy, sell or hold investments described herein. Their purpose is solely to attract attention.
Please, note that the parameters and prices stated in the product description are of indicative nature and serve only referential purposes. The parameters of the actually concluded deals will correspond to the terms agreed during the telephone conversation recorded upon deal conclusion and those may depart from the indicative parameters and prices stated in this product description.
For further information on products and tailor-made pricing, please contact your relationship manager or one of our dealers at Markets Directorate.