Selling Hedge
A hedging strategy with which the sale of futures contracts are meant to offset a long underlying commodity position. Also known as a "short hedge." Investopedia Says:
This type of hedging strategy is typically used for the purpose of insuring against a possible decrease in commodity prices. By selling a futures contract an investor can guarantee the sale price for a specific commodity and eliminate the uncertainty associated with such goods. Related Terms:
Commodity
Futures Contract
Hedge
Long
Short
Short the Basis
Underlying |