THE ANALYSIS OF RISK MANAGEMENT STRATEGY IN GOLD FUTURES MARKET

Abstract

This research has the purpose toanalyze the risk management strategy by
using technical theory in risk management to reduce losing in transaction
of gold futures market. This study uses descriptive qualitative analysis to
explain risk management in futures trading and the collecting of data use
observation and documentation. The result of risk management has
concluded that a futures trading has 5 strategies. The first strategy is Cut
Loss, strategy to stop loss in Loco London Gold trading. The second one
is switching, method to open new transaction after using “cut loss”
strategy in gold futures market. The third strategy is Locking or we also
called hedging that this method has purpose to save capital from bigger
lost with two transaction in controvert position. The fourth strategy is
double cover, the same with locking / hedging, but double cover strategy
is open position again with true position in gold market. The last strategy
is average, this method is repeat the same transaction with the first
transaction. So, futures trader should know these strategies before running
transaction of gold futures market.

Key word:risk management, riskstrategy, futures market, gold futures
market