Buying Hedge
Definition of 'Buying Hedge'A transaction that commodities investors undertake to hedge against possible increases in the prices of the actuals underlying the futures contracts. |
|
Investopedia explains 'Buying Hedge'Also called a long hedge, this particular strategy protects investors from increasing prices by means of purchasing futures contracts. Many companies will attempt to use a long hedge strategy in order to reduce the uncertainty associated with future prices. |
Related Definitions
Articles Of Interest
-
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
An Introduction To Gamma-Delta Neutral Option Spreads
Find the middle ground between conservative and high-risk option strategies. -
Nobel Winners Are Economic Prizes
Before you try to profit from their theories, you should learn about the creators themselves. -
Investing During Uncertainty
The inability to forecast future events can turn the markets upside down. Find out how to stay right-side up. -
An Overview Of Commodities Trading
Commodities markets, both historically and in modern times, have had tremendous economic impact on nations and people. Investing in commodities can quickly degenerate into gambling or speculation ... -
The Copper King: An Empire Built On Manipulation
Find out how Yasuo Hamanaka's actions in the copper market forever changed the rules for commodity traders. -
Get An Academic Finance Career
Working nine months a year and earning a six-digit salary might seem like the high life, but these jobs are not easy to come by. -
Uncommon Jobs For Your Finance Degree
Not everyone can land the glamour jobs, but the world of finance has a lot more to offer. Here are some uncommon jobs in finance that you might want to consider. -
Learn The Lingo Of Private Equity Investing
Because of the non-public nature of private equity, it can be difficult to the learn the lingo. We break it down here. -
An Introduction To CFDs
The benefits of these securities abound, but high leverage also magnifies potential losses.
Free Annual Reports