Matched-leg mandate
No position is opened without its offsetting leg. One-sided exposure is not permitted by the trading mandate.
Risk, managed — not assumed away.
The hedge removes directional market risk, and automation removes most of the execution risk a manual desk would carry. Here is how the rest is controlled — and what remains.
Controls
How the risk is managed.
Free-margin buffer
A defined percentage of margin capacity is held unused at all times, so adverse movement does not force liquidation.
Currency exposure hedged
In the cross-exchange strategy the USD/INR leg is hedged, so movement in the currency pair is not left as an open exposure.
Defined exit windows
Positions are closed within the contract cycle — either at a defined interval after entry or at expiry.
Direct access, automated execution
Orders are placed under exchange membership rather than routed through a third-party broker, and both legs are sent by one automated instruction.
Daily reconciliation
Positions and cash are reconciled daily against exchange statements, independently of the trading desk.
Boundaries
What this strategy does not do.
A clear mandate is easier to supervise than a broad one. These are hard limits, not preferences.
No directional positions
The strategy does not take a naked long or short view on any commodity.
No unhedged carry
Positions are not held overnight without their offsetting leg in place.
No OTC instruments
Only exchange-listed, centrally cleared contracts are traded.
No exotic leverage
Leverage is limited to exchange margin on matched positions.
No discretionary override
The desk does not abandon the hedge to chase a market move.
No lock-up beyond terms
Redemption terms are contractual and are set out in the fund documents.
Risk
The risks that remain.
What remains is short, and we would rather you read it here than discover it later.
Execution and fill
Automation removes the delay a manual desk would carry, but not fill risk. The two contracts do not carry equal depth, so in a thin book one leg can fill away from the quoted price and the spread captured can be smaller than the spread observed.
Exchange rules and taxes
Contract specifications, margin rules and transaction taxes are set by the exchange and regulator, not the manager. Changes can alter the strategy's economics — commodities transaction tax is already among the largest single costs the book carries.
Operational and human error
Systems are purpose-built and heavily automated, which makes this risk low rather than absent. Connectivity, settlement infrastructure and human oversight remain points of failure, and are monitored accordingly.
Targets referred to on this website are objectives, not guarantees. Capital is at risk and past performance is not a reliable indicator of future results.
Check the evidence, line by line.
Trade-confirmed reconciliations, strike-level matched positions, exchange statements and audited accounts — shared under a mutual confidentiality agreement.