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Definition of 'Commercial Hedger'
A corporation that purchases futures to control its costs. When a corporation uses a commodity in the creation of its product or service, hedging can help to keep that commodity affordable. A construction company, for example, could be called a commercial hedger if it purchased steel futures to control its rebar costs. Another example is an airline company that purchases crude oil futures to balance its fuel costs.
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Investopedia explains 'Commercial Hedger'
Commercial hedging is a way for companies to reduce price risk by locking in the price of production goods. This practice can be used in almost any line of business, but it is common in agriculture and banking. Companies also commonly hedge against interest-rate risk and foreign-exchange risk. Hedging does not eliminate the possibility of a corporation being negatively impacted by price changes, but it can soften the blow. This is similar to an individual purchasing homeowner’s insurance. The insurance doesn't eliminate the possibility of his house burning down, but does drastically reduce the costs he'll have to pay if it does.
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Search results for 'Commercial Hedger'
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http://www.investopedia.com/articles/optioninvestor/06/goldsilverfutures.asp
... inflation, a speculative play, an alternative investment class or a commercial hedge,
gold ... related reading, see What is the difference between a hedger and a ...
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http://www.investopedia.com/articles/economics/08/determining-oil-prices.asp
... and oil lamps, it wasn't until 1901 that the first commercial well capable of ... two
types of futures traders: hedgers; speculators. An example of a hedger would be ...
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http://financialedge.investopedia.com/financial-edge/1010/5-Metals-That-May-Be-Brighter-Than-Gold.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold/palladium.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold/platinum.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold/silver.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold/copper.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/slide-show/5-metals-that-may-be-brighter-than-gold/how-to-invest.aspx
... It's used to make electrical wiring, car batteries, microchip circuitry, pipes for
plumbing in homes and commercial buildings, roof ... (If you are a hedger or a ...
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http://www.investopedia.com/articles/optioninvestor/07/energy_market.asp
... natural gas. Within the 25%, about half is used by industry, while the other
half by commercial and residential users. Natural gas ...
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