long hedge

  

Definition

Transaction that secures an advantage or protection against a possible increase in the price of a traded item (commodity, financial instrument, security, etc.) that will be bought or sold in the future. For a buyer or consumer, it provides at least a partial protection by securing future supply at a fixed ceiling price. For a seller it locks in an advantageous floor price. Also called buy hedge, buying hedge, or purchasing hedge. See also short hedge.

Related Videos




http://www.businessdictionary.com/definition/long-hedge.html

Popular 'Commodities & Precious Metals Trading' Terms

Today's Top Bulls

72% Bullish
(36 Votes)
70% Bullish
(103 Votes)
69% Bullish
(54 Votes)
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z