Short hedge

The sale of a futures contract( s) to eliminate or lessen the possible decline in value ownership of an approximately equal amount of the actual financial instrument or physical commodity.Related: Long hedge. The New York Times Financial Glossary

* * *

   The sale of a futures or option position to protect against a fall in price in the corresponding 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 of option. Opposite of long hedge.
   ► See also Cash Markets, Futures, Hedging, Option.

Financial and business terms. 2012.

Look at other dictionaries:

  • short hedge — also: selling hedge Selling futures contracts to protect against possible declining prices of commodities that will be sold in the future. At the time the cash commodities are sold, the open futures position is closed by purchasing an equal… …   Financial and business terms

  • Short Hedge — An investment strategy that is focused on mitigating a risk that has already been taken. The short portion of the term refers to the act of shorting a security, usually a derivatives contract, that hedges against potential losses in an investment …   Investment dictionary

  • Short The Basis — A futures strategy involving the purchase of a futures position to hedge against a future commitment to deliver the underlying commodity. Opposite to a short hedge, shorting the basis implies that the investor will be taking a short position in… …   Investment dictionary

  • Hedge-Fonds-Strategien — sind verschiedene Verhaltensweisen bei der Verwaltung eines Hedge Fonds. Inhaltsverzeichnis 1 Übersicht 2 Long/Short Equity Strategies 3 Relative Value Strategies …   Deutsch Wikipedia

  • hedge fund — see fund 2 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. hedge fund n. A mutual fun …   Law dictionary

  • hedge-hop — hedgeˈ hop intransitive verb (informal) To fly low in an aircraft as if hopping over hedges • • • Main Entry: ↑hedge * * * hedge hop or hedge|hop «HEHJ HOP», transitive verb, intransitive verb, hopped, hop|ping. to fly (an airplane) very low over …   Useful english dictionary

  • hedge|hop — hedge hop or hedge|hop «HEHJ HOP», transitive verb, intransitive verb, hopped, hop|ping. to fly (an airplane) very low over the ground, especially in short, repeated flights, as for dusting crops or bombing: »He gunned the left engine and… …   Useful english dictionary

  • hedge´hop´per — hedge hop or hedge|hop «HEHJ HOP», transitive verb, intransitive verb, hopped, hop|ping. to fly (an airplane) very low over the ground, especially in short, repeated flights, as for dusting crops or bombing: »He gunned the left engine and… …   Useful english dictionary

  • hedge´-hop´per — hedge hop or hedge|hop «HEHJ HOP», transitive verb, intransitive verb, hopped, hop|ping. to fly (an airplane) very low over the ground, especially in short, repeated flights, as for dusting crops or bombing: »He gunned the left engine and… …   Useful english dictionary

  • Hedge fund — n. (Finance) a mutual fund or partnership of investors who pool large sums of money to speculate in securities, increasing the risk of such activity by using borrowed money to leverage the investments, or by selling short. [PJC] …   The Collaborative International Dictionary of English

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.