# Use cases **1. Hedging Against Price Volatility** Periodic and Expiring futures are powerful tools for businesses to protect themselves against price fluctuations in commodities and energy markets. Companies like airlines, utility providers, and energy producers can lock in prices to ensure cost stability. \ **Example:** An airline can hedge its jet fuel costs by using ECSFs to fix the price of fuel for an upcoming period, protecting itself from sudden price surges caused by geopolitical or supply chain disruptions. **2. Speculative Trading** Traders can leverage PCSFs to profit from short-term price movements without the complexities of physical delivery. The periodic settlement (e.g., every 8 hours) makes these contracts ideal for dynamic trading strategies like scalping or day trading. \ **Example:** A trader expects crude oil prices to rise due to a supply cut announcement. They take a long position in WTX PCSFs, earning a profit as prices increase. **3. Portfolio Diversification** Institutional investors and hedge funds can diversify their portfolios by including energy and commodity futures, reducing reliance on traditional asset classes like equities and bonds. ECSFs linked to renewable energy-related assets provide opportunities to align investments with the global energy transition. \ **Example:** A hedge fund adds ECSFs tied to lithium prices to its portfolio to hedge exposure to battery production costs while diversifying away from traditional equity markets. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.sphx.io/exchange/use-cases.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.