substitute sale

substitute sale
A method for hedging price risk that uses debt market instruments, such as interest rate futures, or that involves selling borrowed securities as the primary assets. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • short hedge — also: selling hedge Selling futures contracts to protect against possible declining prices of commodities that will be sold in the future. At the time the cash commodities are sold, the open futures position is closed by purchasing an equal… …   Financial and business terms

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