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Hedge and Forget – Fincyclopedia
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May 2, 2021
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Implementation Shortfall
May 2, 2021

A hedge strategy in which an investor makes no attempts to adjust the hedge once its has been set up. The hedging investor simply takes a futures position at the beginning of the life of the hedge and closes out the position at the end of its life. In this sense, the hedge and forget is a static hedge that only involves one trade, and as such it minimizes transactions costs over the life of the hedge.

Hedge and forget is opposite to dynamic hedge.

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