long hedge

Buyer futures contracts to protect against a possible price increase of cash commodities that will e purchased in the future. At the time the cash commodities are bought, the open futures position is closed by selling an equal number and type of futures contracts as those that were initially purchased. Also referred to as a buying hedge. Chicago Board of Trade glossary

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A hedger who is short the cash (needs the cash commodity) buys a futures contract to hedge his future needs. By buying a futures contract when he is short the cash, he is entering a long hedge. A long hedge is also known as a substitute purchase or an anticipatory hedge. The CENTER ONLINE Futures Glossary

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The purchase of a futures contract in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price. Related: hedge, short hedge

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The purchase of a futures contract in anticipation of an actual purchase in the cash commodity market. Used by processors or exporters as protection against an advance in the cash price. See hedge. Chicago Mercantile Exchange Glossary

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A transaction which involves the purchase of a futures contract in anticipation of actual purchases in the cash market. Such a transaction seeks to ensure that any increase in the cash price on the subsequent cash market purchase is offset by a profit on the futures position. Sometimes described as a consumer's hedge or as a price fix hedge. Dresdner Kleinwort Wasserstein financial glossary

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   The purchase of a futures or option position to protect against a price rise in the corresponding cash market. Increased costs from the need to buy a cash commodity which has risen in price will be offset by the profits from a future or option which has also risen in price. The opposite to short hedge.

   ► See also Hedging.