Advertising

Long hedge

• Purchase of a futures contract to lock in the yield at which an anticipated cash inflow can be invested.

• The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price. Related: Hedge, short hedge

• Refers to the status of the open futures contract equivalent position. Here, it is understood that the hedger is long futures against a short actual position.

 
 Embedded terms in definition
 Anticipation
Cash market
Cash price
Cash
Contract
Futures contract
Futures
Hedge
Long
Market
Position
Purchase
Short hedge
Short
Yield
 
 Related Terms
 

<< Long coupons Long industrials >>

Getting Your Finances Ready for Your Golden Years: If you're seriously considering retirement, you also should be seriously thinking about how to ensure that your financial life is as comfortable and stress-free as possible. Here are a few tips. More...

The game of life is to come up a winner, to be a success, or to achieve what we set out to do. Yet there is always the danger of failing as a human being. - Richard Milhouse Nixon

Advertising



Copyright 2009-2018 GVC. All rights reserved.