Unit of competency Outline

Date retreived
22/07/2026 9:07 AM AWST

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Manage price risk through trading strategy

Manage price risk through trading strategy

Unit of competency
National Code
AHCAGB606
State Code
BAL37
TGA Status
Replaced
DTWD Status
Replaced
Current Release Number
1.00
Current Release Date
27/06/2016
View on TGA
State Implementation and Classification
Approved Date
12/01/2017
Field of Education
080301 - Business Management
Original Release Date
12/01/2017
Nominal Hours
45
Description
This unit of competency describes the skills and knowledge required to manage price risk by developing a trading strategy.All work must be carried out to comply with workplace procedures, work health and safety legislation and codes.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.No occupational licensing, legislative or certification requirements are known to 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 appropriate expertise 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
D6647 AHCAGB606A Manage price risk through trading strategy Unit of competency
Replaced By
State Code National Code Title Type
OBK38 AHCAGB612 Manage price risk through trading strategy Unit of competency
State Code National Code Title Type
BDC9 AHC60316 Advanced Diploma of Agribusiness Management Qualification
BCY4 AHC60216 Advanced Diploma of Horticulture Qualification