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.


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Futures contract
Long hedge
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