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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
 

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