{"id":175836,"date":"2020-09-22T19:58:00","date_gmt":"2020-09-22T23:58:00","guid":{"rendered":"https:\/\/ibkrcampus.com\/trading-lessons\/treasuries-hedging-and-risk-management\/"},"modified":"2026-06-30T13:25:31","modified_gmt":"2026-06-30T17:25:31","slug":"treasuries-hedging-and-risk-management","status":"publish","type":"trading-lessons","link":"https:\/\/www.interactivebrokers.com\/campus\/trading-lessons\/treasuries-hedging-and-risk-management\/","title":{"rendered":"Treasuries Hedging and Risk Management"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>New to Interactive Brokers?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/ndcdyn.interactivebrokers.com\/mkt\/?src=taTreasAcc&amp;url=%2FUniversal%2FApplication\" target=\"_blank\" rel=\"noreferrer noopener\">Open Account<\/a><\/div>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n<a href=\"https:\/\/www.cmegroup.com\/education\/courses\/introduction-to-treasuries\/treasuries-hedging-and-risk-management.html?utm_source=traders_academy&amp;utm_medium=link&amp;utm_campaign=academy_relaunch&amp;utm_content=introduction-to-treasuries&amp;utm_term=lesson-7-treasuries-hedging-and-risk-management\" target=\"_blank\" rel=\"noopener noreferrer\">CME Group Original study notes<\/a>","protected":false},"excerpt":{"rendered":"<p>Hedging interest rate risk with CME Group U.S. Treasury futures begins with identifying the futures contract\u2019s cheapest to deliver (CTD) security. Once identified, we can determine the implied basis point value (BVP). BPV is also known as value of a basis point (VBP) or dollar-value of an .01 (DV01). They all refer the same thing, the financial change of the security or portfolio to a change in a 0.01% change in yield. To construct the proper dollar-weighted hedge ratio versus the product or position at risk, we need to first determine the BPV.<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"_acf_changed":false,"footnotes":""},"contributors-categories":[13577],"traders-academy":[13125,13128,13132],"class_list":["post-175836","trading-lessons","type-trading-lessons","status-publish","contributors-categories-cme-group","traders-academy-beginner-trading","traders-academy-level","traders-academy-trading-lesson"],"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Archives | Traders&#039; Academy | IBKR Campus<\/title>\n<meta name=\"description\" content=\"To construct the proper 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