Marketplaces Close These Gaps and Permit Real-Time Price Discovery
Pennies, nickels, and dimes matter when large volumes are traded. Approaching Dealers serially leaves too much to chance.
How much to chance? A hedger executing hedges on 100,000 barrels of crude oil will lose $5,000 for every nickel that is not optimized in a transaction. And $25,000 for every quarter.
A modern marketplace that conducts simultaneous negotiation across multiple Dealers – like AEGIS Markets – is the ideal way to optimize hedging transactions consistently. And those same 100,000 barrels of crude can be executed for…$250. Yes, that is one-quarter of a penny per barrel.
In the end, when efficient price discovery is the objective, marketplaces are the solution.