Financial Services
Nova Energy offers a wide range of financial services to help our clients manage risk. The ability to use the future markets to balance current physical positions create a more stable position for our clients.
Futures and Options Trading
Nova Energy Inc. is classified as an Introducing Broker by RJ O’Brien, the oldest and largest futures brokerage and clearing firm in the United States. This classification allows us to provide financial services of securing buy and sell positions in both futures and options markets.
Hedging
Hedging is a strategy used by purchasers of physical commodities who seek to reduce their risk by taking an equal “short” position in the futures market of the same commodity. The principle behind establishing equal and opposite positions in the cash and future or option markets is that a loss in one market should be offset by a gain in the other market.
Forward / Fixed Price Programs
Fluctuations in fuel charges cause havoc on budgets and forecasts. At Nova Energy we offer customized solutions that help stabilize these costs and provided the added benefit of reducing risk. At Nova Energy we help our clients establish a Risk Management Account and create specific financial strategies to help protect against market fluctuations. The Fixed Price Program with Nova is available for any Rack Market in the country and will also allow you to retain the same suppliers that you are currently using.
These financial strategies include:
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Fixed Price Programs offered by Nova Energy available in time frames:
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Retail Margin Enhancement
Nova Energy works closely with Retail clients to help create risk policies, establish goals and develop strategies to balance open inventory positions. The ability to protect retail margins by hedging rack-to-retail margins allows the Retailer to uphold the value of the position they hold in the market.
Nova Energy Retail Margin Enhancement Programs offer:
- Futures
- Options
- Swaps