hedging
31hedging — A transaction by which one who has made a contract for the sale or purchase of a commodity protects himself against loss through a fluctuation in the market by making a countercontract for purchase or sale of an equal quantity of the commodity; a …
32macro hedging — Hedging the net risk exposure of an entity s entire portfolio or balance sheet. As opposed to micro hedging a single instrument. In interest rate risk management, macro hedging involves hedging the net mismatch or the net duration for the entire… …
33Double Hedging — Hedging a position by using futures and options, thereby doubling the size of the hedge. The Commodity Futures Trading Commission (CFTC) considers double hedging to be a situation where a trader holds a long futures position in a commodity in… …
34micro hedging — Hedging the interest rate risk exposure of a single asset or liability. See macro hedging, its converse. American Banker Glossary …
35cross-hedging — Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets follow similar price trends ( e.g., using soybean meal futures to hedge …
36Hedging demands — Demands for securities to hedge particular sources of consumption risk, beyond the usual mean variance diversification motivation. The New York Times Financial Glossary …
37hedging demands — Demands for securities to hedge particular sources of consumption risk, beyond the usual mean variance diversification motivation. Bloomberg Financial Dictionary …
38Hedging contracts — Contracts which establish future prices and quantities of electricity independent of the short term market. Derivatives may be used for this purpose. U.S. Dept. of Energy, Energy Information Administration s Energy Glossary *** Contracts… …
39hedging against inflation — Protecting one s cash flow, income, or capital against inflation by buying equity or making other investments that are likely to rise with the general level of prices …
40hedging bets — The placing of a bet or bets upon a team or contestant in a sporting event after having made a bet or bets upon the opposing team or contestant, the purpose being to minimize losses …
