FT MarketWatch

Buying hedge

Buying Futures to Hedge against the sale of a Cash commodity. An investor might use a Buying hedge if he/she expects to Buy a certain amount of the commodity in the future, but is worried about price fluctuations. He/she will Buy a futures Contract in Order to be able to Buy the commodity at a fixed price later. also called Long hedge.

Related Terms: 12 Buy, Buying hedge, Cash, Call, Cash commodity, Contract, Futures, Futures contract, Hedge, Long, Long hedge, Order
Other Related Pages: Category: Futures Starting With: B
Semi Related Terms: 583 CLICK HERE TO VIEW