A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Short Hedge
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| - | The sale of a [[Futures|futures]] or [[Option|option]] [[Position|position]] to protect against a fall in price in the corresponding [[Cash|cash]] market. Losses in holdings of cash instruments or commodities will be offset by the profits from the futures or options which can be realized by meeting those obligations at the new lower price of the future or option. Opposite of [[Long Hedge|long hedge]].
| + | A way of reducing investment or trading risk. For example, the sale of a [[Futures|futures]] or [[Option|option]] [[Position|position]] to guard against a fall in price in the corresponding [[Cash|cash]] market. Any losses in the cash market will be offset by the profits from the short futures or options position. Opposite of [[Long Hedge|long hedge]]. |
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| - | See also: [[Markets]], [[Futures]], [[Hedging]], [[Option]] | + | See also: [[Futures]], [[Hedging]], [[Option]] |
Revision as of 12:33, 9 January 2009
A way of reducing investment or trading risk. For example, the sale of a futures or option position to guard against a fall in price in the corresponding cash market. Any losses in the cash market will be offset by the profits from the short futures or options position. Opposite of long hedge.
See also: Futures, Hedging, Option