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Options Trading

Forward Trade
Insure and secure against price or water access volatility
A water option is a contract between two parties giving the taker the right, but not the obligation, to buy or sell a parcel of water at a predetermined price on or before a predetermined date. That right is paid for and called the ‘premium’.

Option contracts are common place for irrigated commodity markets and can provide a type of insurance against price fluctuations and/or volume restrictions in the market. Options can be valuable to your water management strategy however participants should clearly understand and consider the risks and benefits prior to engagement.

Are you interested in managing seasonal water price volatility?

Would you pay an Insurance Premium to secure the right to buy or sell your water at an agreed price in a predetermined future delivery period?

Learn more

An option is a contract between two parties giving  the right, but not the obligation, to buy or sell a parcel of water at a predetermined price on or before a predetermined date. That right is paid for and called the  ‘premium’. 

Every option contract has both an Issuer and a taker, a predetermined premium, exercise price and exercise period. There are Put options and Call options.

A put option provides the right but not the obligation to sell your water at a predetermined price at a predetermined point in time.

A Call option provides the right but not the obligation to buy water at a predetermined price at a predetermined time.

Water Options can be entered into for temporary or permanent water.

 

Express your interest in options trading 
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