- hedger
- An individual or company owning or planning to own a cash commodity, corn, soybeans, wheat, U.S. Treasury bonds, notes, bills etc. and concerned that the cost of the commodity may change before either buying or selling it in the cash market. A hedger achieves protection against changing cash prices by purchasing ( selling)futures contracts of the same or similar commodity and later offsetting that position by selling ( purchasing) futures contracts of the same quantity and type as the initial transaction. Chicago Board of Trade glossary————One who hedges; one who attempts to transfer the risk of price change by taking an opposite and equal position in the futures or futures option market from that position held in the cash market. The CENTER ONLINE Futures Glossary————An individual or firm who uses the futures market to offset price risk when intending to sell or buy the actual commodity. See pure hedger, selective hedger. Chicago Mercantile Exchange Glossary————
Financial and business terms. 2012.