rolling hedge

rolling hedge
Changing a futures hedge from one contract month to another. Rolling a short hedge may be advisable when more time is needed to complete the cash transaction to avoid delivery on the futures contract. Hedge rolling may also be considered to keep the hedge in the less active, more distant months, thus reducing the likelihood of swift price movements and the resulting margin calls. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

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