HedgeStreet offers unique financial instruments that allow traders at all levels to hedge against or speculate on short-term price fluctuations in various markets.

Hedging

HedgeStreet allows investors to hedge against risk. With the extensive and continually expanding range of contracts offered on HedgeStreet, members are able to trade in currency, commodities, and equity index markets.

Speculating

HedgeStreet also allows investors to speculate on outcomes in the areas in which they have the most confidence. A trader may not feel that he has the knowledge to anticipate the direction of individual stocks or bonds. He may also be unwilling to tackle the risks and complexities of traditional commodities markets. However, he may feel quite confident predicting the rise or fall of gold or oil prices. With binary contracts, he can speculate on changes in these markets at investment levels that make sense to him.

For example, assume that you have been tracking gold prices, watching political events unfold and monitoring changing interest rates. As a consequence, you believe the price of gold will rise sharply in the near future.

You could speculate on this belief by purchasing a binary contract that will pay you $100 if the price of gold surpasses $850.00 by a specific date. If your belief that gold prices will exceed $850.00 is correct, you will collect $100 for each Gold contract you hold (minus a small fee) when the contracts settle. Alternatively, you could also sell any of your contracts to a willing buyer before the close of trading on the contracts' expiration date.