Unit of competency Outline
Date retreived
22/07/2026 4:41 PM AWST
22/07/2026 4:41 PM AWST
Whilst all efforts are made to provide accurate and timely information from the relevant source/documentation, please be aware that the information supplied may not be the most current version. The accuracy of the detail has not been confirmed by the Department and therefore should not be relied upon without first confirming the contents.
Manage price risk through trading strategy
Manage price risk through trading strategy
Unit of competency
National Code
AHCAGB612
AHCAGB612
State Code
OBK38
OBK38
TGA Status
Current
Current
DTWD Status
Approved
Approved
State Implementation and Classification
Approved Date
28/01/2020
Field of Education
080301 - Business Management
Original Release Date
28/01/2020
Nominal Hours
45
Description
This unit of competency describes the skills and knowledge required to manage price risk by analysing trends, forecasting and developing a trading strategy.This unit applies to individuals who take personal responsibility and exercise autonomy in undertaking complex work. They must analyse information and exercise judgement to complete a range of advanced skilled activities. They work in contexts that are subject to change and adapt a range of fundamental principles accordingly.All work must be carried out to comply with workplace procedures, work health and safety legislation and codes.No licensing, legislative or certification requirements apply to this unit at the time of publication.
Notes
Elements and Performance Criteria
1. Conduct market research
- 1.1 Collate and evaluate estimates of supply and demand
- 1.2 Analyse past trends and assess possible future scenarios
- 1.3 Relate own products to market indicators
2. Determine price required
- 2.1 Calculate cost of production and determine break-even price
- 2.2 Calculate overhead costs to be allocated against the enterprise
- 2.3 Determine margins for profit and risk
- 2.4 Set forward price objectives to meet cost of production, contribution to overheads and profit required
- 2.5 Evaluate personal attitude to risk
3. Develop sales plan
- 3.1 Evaluate cash markets and assess projected price trends
- 3.2 Obtain and assess forward contract information
- 3.3 Obtain and assess futures prices
- 3.4 Evaluate selling options against price objectives and the assessment of price movement risk
- 3.5 Assess taxation and cash flow implications
- 3.6 Develop appropriate mix of sale options in a trading strategy
- 3.7 Develop contingency plans to address possible shifts in price trend
4. Implement trading strategy
- 4.1 Seek advice from experts as required
- 4.2 Monitor market information and adjust trading strategy according to contingency plans
No information
No information
Replaces
| State Code | National Code | Title | Type |
|---|---|---|---|
| BAL37 | AHCAGB606 | Manage price risk through trading strategy | Unit of competency |
| State Code | National Code | Title | Type |
|---|---|---|---|
| BCY4 | AHC60216 | Advanced Diploma of Horticulture | Qualification |