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
A way of reducing the risk of an investment or trading position. For example, a short futures or option position may be taken out to guard against a fall in price in the corresponding cash market. Any losses in the cash market will be offset by profits from the short futures or options position. Opposite of long hedge.
See also: Hedging