Diesel Hedge Futures and Options

A Diesel Hedge Futures or Option Contract is a type of Derivative in which the underlying traded product references a foreign underlying, but the instrument itself is settled in rands per litre. The JSE performs​ the necessary currency and volume conversion.

This contract gives you exposure to an efficient hedge for the local diesel pump prices by tracking an international reference market. The underlying instrument (European Gasoil) is traded under license from the CME Group and is cash settled.

Who should us​e this?

Diesel Hedge Futures and Options are primarily used by hedgers to mitigate the local price risk of diesel. You can also use them to speculate (profit from price changes) or to diversify your portfolio. ​

Features

  • Offer easy access to a local Diesel Hedge correlating to the international market traded in rands per litre.
  • Effectively manage price risk of the basic fuel price component of the local diesel price.
  • Offers a secure settlement environment and removes counterparty risk because it is an exchange-traded product.
  • Enables you to identify short- and long-term price and volatility patterns for diesel.
  • Enables you to hedge or gain exposure based on expectations of the directional price, spread movement or volatility of European Gasoil.
  • Have a settlement period.
  • Cannot be traded during the reset month.
  • Are subject to margin payments.​

​How to get it

To access this product, register as a client with an authorised JSE member firm, deposit the required initial margin and buy or sell according to your needs. ​​

 

 

 

 

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