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Stack Hedge

A hedging technique and a front load hedge which involves stacking or concentrating most of the futures contracts used to...

Money Market Hedge

Short term techniques which are used to lock in foreign exchange rates and cash equivalents. This is typically done by...

Naive Hedge Ratio

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

Delta Cross Hedge

A hedging technique that is usually deployed in case two mismatches occur: one between the maturities (maturity mismatch) and another...

Forward Hedge

A hedge that involves the use of foreign exchange forwards (FX forwards). It consists of an outright purchase of a...

HR

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

Macro Hedge

The use of futures contracts to reduce or eliminate the downside systematic risk of an entire portfolio. However, this hedge...

Micro Hedge

A hedge which is designed to reduce or eliminate the risk associated with a single asset in a portfolio rather...

Roll Risk

The possible danger of loss that long-term hedgers face when reinvesting in more distant futures contracts as they retire near-month...

Anticipatory Hedge

Hedging a transaction that is expected to be made on a future date using futures contracts. In other words, it...