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FoFs

It stands for fund of hedge funds; a fund that invests in a variety of individual hedge funds, typically from...

Electricity Swap

A financial contract (specifically an electricity derivative) which allows the holder to pay a fixed price for underlying electricity irrespective…

Put Warrant

A warrant that a company writes on its own common stock, giving the buyer/holder the right to sell the company’s…

CF Hedge

A hedge that aims to mitigate the risks associated with future cash flows/ CF (e.g., the risk of change in...

FV Hedge

A hedge that accounts for the changes in the fair value (FV) of a recognized asset or liability or that...

Over-Hedge

In relation to a hedging instrument/ hedged item and corresponding accounting treatment, it describes the situation where the cumulative change...

Under-Hedge

In relation to a hedging instrument/ hedged item and corresponding accounting treatment, it describes the situation where the cumulative change...

Enumerated Hedge

A hedge (hedging transaction) that is exempted from position limits as decided by an exchange. Examples of enumerated hedging positions...

Risk Reversal

A hedge strategy that involves selling a call and purchasing a put to protect investors in commodity markets against unfavorable,...

Neutral Hedge

A hedge that involves taking positions in a group of instruments in an attempt to earn a riskless return on...