direct hedge

direct hedge
When the hedger has (or needs) the commodity ( grade, etc.) specified for delivery in the futures contract, he is "direct hedging." When he does not have the specified commodity, he is cross hedging. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

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  • hedge ratio — The relationship between the number of contracts required for a direct hedge and the number of contracts required to hedge in a specific situation. The concept of hedging is to match the size of a positive cash flow from a gaining futures… …   Financial and business terms

  • direct hedges — A form of capital markets or derivatives hedge in which the cash market instrument being hedged is hedged by an options or futures contract on the same underlying instrument. For example, a 91 day U.S. Treasury bill hedged with a Treasury bill… …   Financial and business terms

  • hedge — [hej] n. [ME hegge < OE hecg, akin to Ger hecke < IE base * kagh , wickerwork, wickerwork pen > ON heggr, L caulae, sheepfold: basic sense “woven fence, enclosure”] 1. a row of closely planted shrubs, bushes, or trees forming a boundary… …   English World dictionary

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • Hedge (finance) — For other uses, see Hedge (disambiguation). Finance Financial markets …   Wikipedia

  • hedge — hedge1 [ hedʒ ] noun count ** a line of bushes or small trees growing close together around a garden or field: We crawled through a gap in the hedge. a high hawthorn hedge a hedge against something a way of trying to protect yourself against a… …   Usage of the words and phrases in modern English

  • hedge — I UK [hedʒ] / US noun [countable] Word forms hedge : singular hedge plural hedges ** a line of bushes or small trees growing close together around a garden or field We crawled through a gap in the hedge. a high hawthorn hedge • a hedge against… …   English dictionary

  • hedge — hedge1 [hedʒ] n [: Old English; Origin: hecg] 1.) a row of small bushes or trees growing close together, usually dividing one field or garden from another 2.) something that protects you against possible problems, especially financial loss hedge… …   Dictionary of contemporary English

  • hedge — /hɛdʒ / (say hej) noun 1. a row of bushes or small trees planted close together, especially when forming a fence or boundary. 2. any barrier or boundary. 3. an act or a means of hedging a bet or the like. 4. an investment, fiscal policy, etc.,… …  

  • hedge — 1 noun (C) 1 a row of small bushes or trees growing close together, usually dividing one field or garden from another 2 something that gives you protection in case you lose money: Buying a house will be a hedge against inflation. 2 verb hedged,… …   Longman dictionary of contemporary English

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