WHAT WE DO
Dodwell & Co. brokers coal swaps – both collared and uncollared – focused on Asia Pacific markets and indexed to Indonesian coal benchmarks.
For newcomers, we recommend reading the relevant chapters at CoalTradersHandbook.com to understand the mechanics of coal derivatives.
What is a Coal Swap?
A coal swap is a financial contract allowing participants to hedge or speculate on coal prices without physical delivery. These are typically cash-settled and ideal for producers, buyers, and traders seeking price certainty.
What is a Collared Swap?
A collared coal swap is a financial contract allowing participants to speculate on coal prices without physical delivery. A collared swap transaction is where the maximum profit or loss is limited to a mutually agreed amount.
Avoidance of Doubt #1
If the chosen coal index is higher than the fixed price of this transaction, the buyer will receive the mutually agreed amount from the Seller.
Avoidance of Doubt #1
If the chosen coal index is higher than the fixed price of this transaction, the buyer will receive the mutually agreed amount from the Seller.