Solirion
DERIVATIVES / HEDGING & PORTFOLIO OVERLAYS

Start with exposure.
Design the hedge.

A portfolio-led process for comparing hedge instruments, residual exposure, implementation costs and review triggers.

Discuss hedging & portfolio overlays All derivatives
HOW THE INSTRUMENT WORKS

Hedging & Portfolio Overlays

A hedge is assessed in relation to an existing or anticipated exposure. Futures, options, forwards and combinations can change different dimensions of a portfolio; hedge ratio, basis, correlation and timing determine how closely the chosen instrument offsets the intended exposure.

INSTITUTIONAL FOCUS

Asset managers, professional family-office teams, funds and corporate treasury teams with identifiable market or cash-flow exposures.

APPLICATIONS

Start with a specific exposure.

01

Digital-asset portfolio review

Assess price, volatility and liquidity exposures across holdings and compare candidate hedge instruments.

02

Cross-asset risk review

Map equity-index, currency, interest-rate or commodity sensitivities to relevant listed or bilateral instrument families.

03

Ongoing mandate oversight

Define hedge ratios, review dates and escalation triggers so changes in the portfolio prompt a documented reassessment.

CONTRACT & BRIEFING INPUTS

Read the terms.
Define the operating scope.

Exposure definition
Holdings or anticipated cash flows, valuation currency, source positions and measurement date.
Hedge objective
Target sensitivity, time horizon, acceptable residual exposure and constraints.
Instrument comparison
Candidate contract, notional, hedge ratio, expiry, settlement and counterparty or venue.
Cost and liquidity
Premiums, bid-offer effects, funding, margin liquidity, roll costs and exit conditions.
Review mandate
Scenario assumptions, monitoring frequency, rebalance thresholds and approval responsibilities.
PRODUCT LIFECYCLE

From exposure to an accountable record.

  1. 01

    Measure

    Establish the source positions, cash flows and market sensitivities.

  2. 02

    Compare

    Assess candidate instruments, costs, residual exposure and adverse scenarios.

  3. 03

    Define

    Document the hedge scope, approvals, provider roles and review triggers.

  4. 04

    Reassess

    Reconcile positions and outcomes as markets, holdings and liquidity needs change.

RELATED INSTRUMENTS

Compare the product choices.

Futures

Listed contracts for defined market exposure, position hedging and the management of basis, expiry and collateral.

Explore the product

Options & Volatility

Calls, puts and combinations for examining price and volatility exposures, with explicit premiums, exercise terms and settlement.

Explore the product
CONNECT WITH SOLIRION

Discuss your hedging & portfolio overlays requirements.

Include the underlying, approximate notional, time horizon, institution and relevant jurisdictions. Contract and service details can then be assessed for your specific requirements.

Start a product discussion