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Naive Hedge Ratio

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

HR

It stands for hedge ratio; the ratio of the value of long or short futures contracts to the value of...

Hedge Ratio

The ratio of the value of long or short futures contracts to the value of the cash commodity being hedged....

Rolling-Stack Hedge

A hedging technique (also a type of leapfrogging) which is used to provide cover for a series of exposures such...

Short Hedge

An investment strategy designed to mitigate an existent risk. In this type of hedging, a security is usually short to...

Zero Basis Risk Swap

A swap agreement made between a municipality (a city or town local council) and a financial intermediary, in which the...

Basis Risk

The danger of loss which is associated with an unexpected widening or narrowing in the basis between the time of...

Swap Futures Option

An option on a swap futures. This option replicates the European-style convention of an OTC option with exercise taking place...