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Forge aHedge provides articles and guides to help you learn to manage your commodity and FX risk with clarity and confidence.
What does "Value" really mean?
Value is one of those words we use all the time, yet it means something different to everyone. For some, value is about saving money. For others, it's about saving time. Some find value in simplicity, while others value reliability, confidence, or the freedom to focus on what matters most. The truth is, value isn't measured by what something costs — it's measured by what it enables. It might mean: Better decisions Greater productivity Reduced risk Opportunities that simply we
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Hedging myths IX - "Hedging is too complex"
Theseus volunteered to enter the Labyrinth on Crete and kill the Minotaur, a monster that was half man and half bull. Ariadne, the daughter of King Minos, fell in love with Theseus and gave him a sword and a ball of thread. Theseus tied the thread at the entrance so he could find his way back through the maze. He killed the Minotaur and escaped by following the thread. Fascinatingly, the modern word ‘clue’ originates from the Middle English ‘clewe’, meaning a ball of thread,
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Hedging myths VIII - "Hedge accounting is just paperwork. We'll sort the documentation later."
Apollo, enamored by Cassandra’s beauty, offered her the gift of prophecy in exchange for her love. Cassandra initially accepted the gift but later rejected Apollo. In retaliation, Apollo cursed her so that no one would ever believe her prophecies, turning her divine gift into a source of endless frustration and tragedy. Today we have the concept of the Cassandra complex, which describes situations where valid predictions or concerns are dismissed or disbelieved Every company
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Hedging myths VII - "We don't need a formal policy — our treasurer knows what they're doing."
Atlas sided with the Titans in their war against the Olympians. When the Titans were defeated, Zeus condemned Atlas to hold up the sky on his shoulders, alone, forever. The moment he stepped away, it would fall. Today he gives his name to the Atlas Mountains, the Atlantic Ocean, and of course, the eponymous geography guide. A lot of treasuries are built on an Atlas. One person knows the exposures, the hedge ratios, the bank relationships, the reasoning behind every position.
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Hedging myths VI - "Derivatives are dangerous. They're for speculators, not for us."
Hephaestus was the Greek god of the forge. (Hence we at Forge aHedge have a special fondness for him). He crafted Achilles' shield, Hermes' winged helmet and Aphrodite’s girdle. The same fire and the same anvil that armed the gods created works of jewellery and elegant thrones. The tool was never the danger. What mattered was what it yielded, and to what purpose. Derivatives carry the same poor reputation. Say "derivatives" in a boardroom and someone will probably mention En
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Hedging myths V - "We've hedged everything. We're fully covered."
Achilles was the greatest of all the Greek warriors. His mother dipped him in the river Styx as an infant, holding him by one heel, leaving it untouched by the waters and thus his only vulnerable body part. He was killed near the end of the Trojan war by Paris who shot him there with an arrow. Today the term Achilles' heel has come to mean a point of weakness which can lead to downfall, especially in someone or something with an otherwise strong constitution. Treasury teams d
1 min read
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