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Short hedge

• Sale of a futures contract to hedge, for example, a position in cash securities or an anticipated borrowing need.

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

• 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.

 
 

Follow this link for all the terms related to short.

 
 Embedded terms in definition
 Cash
Commodity
Contract
Futures contract
Futures
Hedge
Long hedge
Long
Position
Sale
Securities
Short
 
 Related Terms
 

<< Short form prospectus Short interest >>

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