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HedgeStreet Adds Contracts for Trading Silver
SAN MATEO, Calif., Jan. 18, 2005 -- HedgeStreet Inc., the nation's first financial market that lets online investors trade innovative financial instruments based on economic outcomes, announced today the addition of daily contracts for silver -- or Silver Hedgelets -- for hedging or speculating on the degree to which the price of silver (measured in cents per troy ounce) will rise or fall.
Said John Nafeh, Ph.D., founder and chief executive officer, "This is an opportunity for traders to participate in the silver market without a large capital commitment. Like gold, silver is a precious metal with a recognized intrinsic value, making it a popular and affordable asset for many investors."
In addition to its qualities as a precious metal, silver is used extensively in the electronics industry. As the preeminent electrical conductor among metals, it is found in everyday household appliances such as stereos, computers and telephones. In fact, nearly half of all silver is consumed for electric motor switches.
The fluctuating price of silver generally follows a cyclical pattern, rising in the fall as industrial production increases for the holiday shopping season (with a peak in prices often in February and March), and declining in the spring and summer months. Additionally, the value of silver generally moves opposite that of the U.S. dollar. Thus, as the dollar weakens and loses value, silver usually retains or increases its value.
HedgeStreet, which opened in October, is available to any qualified individual with a $500 initial deposit and an Internet connection. The exchange's unique instruments or Hedgelets come in contract sizes of just $10. The first category of Hedgelets feature products similar to classic types of options products like currencies, interest rates and commodity-based products. Exclusive to HedgeStreet are Hedgelets that let retail traders take views on unique, underlying indices, including the price of gas, real estate values, mortgage rates and inflation, as well as economic activities such as retail sales.
About HedgeStreet
HedgeStreet Inc. is the nation's first financial market that lets online investors trade innovative financial instruments based on economic risks in their daily lives. A designated contract market (DCM) and a registered derivatives clearing organization (DCO), HedgeStreet is regulated by the Commodity Futures Trading Commission (CFTC). HedgeStreet is a privately held company based in San Mateo, Calif. For more information, visit www.hedgestreet.com.
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