What is the added value of our activity?

First of all: at first glance, this is not so easy to explain. In any case, our actions fall into the category of “speculation”. But why do we need speculators? Well, we have to go back a bit there.

There are the so-called forward exchange transactions. These are of the utmost importance for all those exporting companies. With these instruments, the producer can avoid the currency risk. In order for this to be able to neutralize the currency risk, there must be the opposite side, namely the speculators.

Thus, the added value consists in being an immensely important part of the entire economic system. Without speculators there is no currency hedging. This would result in an increased and, above all, additional risk for the exporting producer. The same applies, of course, to the producer who buys goods from a country that has a different currency.

Or let’s look at another example from the commodity area. A farmer produces grain. Now he would like to know the price for his grain at the FUTURE time of harvest TODAY and incorporate this value as a fixed calculation variable in his company figures. Thus, the farmer makes a commodity futures transaction on grain for the future. And this is only possible if there are speculators on the other side.

This is the added value that we take on through our extremely important activity.