selective hedging

selective hedging
The technique of hedging where the futures or option position may be lifted and re-entered numerous times before the cash market transaction takes place. A hedge "locks-in" a target price to minimize risk. Lifting the hedge lifts the risk protection (increasing the possibility of loss), but also allows the potential for gain. The CENTER ONLINE Futures Glossary
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Protecting investments during some time periods and not during others. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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