Buying futures to hedge against the sale of a cash commodity. An investor might use a buying hedge if he/she expects to buy a certain amount of the commodity in the future, but is worried about price fluctuations. He/she will buy a futures contract in order to be able to buy the commodity at a fixed price later. also called long hedge.
Related information about buying hedge:
- Buying Hedge Definition | Investopedia
A transaction that commodities investors undertake to hedge against possible increases in the prices of the actuals underlying the futures contracts.
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Definition of buying hedge: Buying futures to hedge against the sale of a cash commodity. An investor might use a buying hedge if he/she expects to buy a ...
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The purchase of a futures contract with the intention of accepting delivery of the underlying asset. One conducts a long hedge in order to lock in a price for an ...
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can use a buying hedge with futures to manage price risk. What Is a Hedge? A buying ... There are five steps to implementing a buying hedge that will likely meet ...
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