IDEAS home Printed from https://ideas.repec.org/a/zbw/espost/271125.html
   My bibliography  Save this article

Features of the use of digital Risk management tools in the capital market and the organized commodity market

Author

Listed:
  • Parii, Liudmyla
  • Makarenko, Tetiana
  • Abuselidze, George
  • Slobodianyk, Anna
  • Mohylevska, Olga
  • Sidak, Ihor

Abstract

The article discusses the features of the introduction of digital risk management tools in the capital market and the organized commodity market. In the course of research, it has been proved that a detailed classification of exchange risks is necessary for their identification at the stage of developing an exchange agreement, planning the income of all participants in an organized commodity market: enterprises (clients of the trading platform), brokers and others. It is proved that the price of grain, determined not so much by the costs of the commodity producer, as by supply and demand and the political situation in the relevant market, is a key element determining the profitability of their economic activities. The current situation shows that the development of an organized commodity market for grain futures will reduce the number of futures transactions concluded by investors on foreign exchanges, thereby increasing the capitalization of domestic trading platforms operating in the capital market and organized commodity market and generally increase the competitiveness of the financial market. Since in a market economy there are frequent fluctuations in prices for goods and services, ex-change rates, interest rates, these facts are catalysts not only for pre-dicting future market conditions, but also for insuring their activities, which will allow hedging on another person, more often on a financial intermediary (speculator). The tools for risk management at the enterprise are highlighted, which can be used by commodity producers independently, while the tools for transfer and risk sharing assume the existence of an appropriate institutional environment and market infrastructure. It is noted that the use of risk management in working with grain futures can allow agricultural producers, processors, elevators to increase the profitability of their enterprises by insuring risks from adverse price changes (especially during a period of high market volatility) in an organized commodity market; to participate in the formation of a fair market price for grain; to plan and control the monetary results of activities more accurately; to ensure the reliability of calculations; to get the best credit opportunities in banks; to expand opportunities for buying and selling grain.

Suggested Citation

  • Parii, Liudmyla & Makarenko, Tetiana & Abuselidze, George & Slobodianyk, Anna & Mohylevska, Olga & Sidak, Ihor, 2023. "Features of the use of digital Risk management tools in the capital market and the organized commodity market," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 389, pages 1-16.
  • Handle: RePEc:zbw:espost:271125
    DOI: 10.1051/e3sconf/202338909023
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/271125/1/Published.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.1051/e3sconf/202338909023?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:espost:271125. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.