Mercantile Bank offers you a wide range of derivative products tailored to suit your unique risk profile. We can assist you with derivative contracts to hedge against risk (resulting from price movement in an underlying asset). Futures contracts, options and swaps are some common types of derivatives on offer. By their nature, derivatives allow for leverage as they are either margin or premium based, rather than the full notional value. This allows you to manage your risk in line with your business profile.
Key Features and Benefits
- Lower cost hedging: Enjoy reduced brokerage fees by not having to trade directly in the underlying asset
- Pricing benefits: Take advantage of price movements in the underlying asset without needing to trade directly in it
- Liquidity: Benefit from the liquid nature of derivatives which are easily traded
- Diversify: Diversify your investment portfolio and reduce your risk.