Derivative instruments also feature in STARHEDGE’s financial activity. The main objective of derivatives is to reduce investment risk, and in particular, the price risk associated with financial instruments. The company also uses arbitrage operations in a manner that ensures generation of income with minimum risk and without additional costs.
Depending on the nature of a given transaction, the following kinds of derivatives are used:
- futures and forward contracts
- options, with a predominance of call options
- swap contracts
By using derivatives, one can achieve a high rate of return on investments in currencies, commodities, stocks, and stock indices, especially if one takes into account the inbuilt leverage mechanism (1:10 / 1:100 / 1:1000).