Energy terms . 2014.
hedging — The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite position in the futures market. Hedgers use the futures markets to protect their business from adverse price changes. Selling ( Short)… … Financial and business terms
Hedging — A strategy designed to reduce investment risk using call options, put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.… … Financial and business terms
hedging — A means by which traders and exporters of grain or other products, and manufacturers who make contracts in advance for the sale of their goods, secure themselves against the fluctuations of the market by counter contracts for the purchase or sale … Black's law dictionary
hedging — A means by which traders and exporters of grain or other products, and manufacturers who make contracts in advance for the sale of their goods, secure themselves against the fluctuations of the market by counter contracts for the purchase or sale … Black's law dictionary
Hedging Transaction — A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging transactions purchase opposite positions in the market in order to ensure a certain amount of gain or loss on a trade.… … Investment dictionary
Contracts for Difference — Ein Differenzkontrakt, auch Contract for Difference (CFD), stellt die laufzeitunabhängige Vereinbarung über einen Barausgleich aus der Differenz zwischen dem Kauf und Verkaufspreis eines Finanzinstruments dar und reflektiert damit die genaue… … Deutsch Wikipedia
Hedging — The buying and selling of futures contracts so as to protect energy traders from unexpected or adverse price fluctuations. U.S. Dept. of Energy, Energy Information Administration s Energy Glossary … Energy terms
hedging — A transaction by which one who has made a contract for the sale or purchase of a commodity protects himself against loss through a fluctuation in the market by making a countercontract for purchase or sale of an equal quantity of the commodity; a … Ballentine's law dictionary
Double Hedging — Hedging a position by using futures and options, thereby doubling the size of the hedge. The Commodity Futures Trading Commission (CFTC) considers double hedging to be a situation where a trader holds a long futures position in a commodity in… … Investment dictionary
Fuel hedging — is a contractual tool used by some airlines to stabilize jet fuel costs. A fuel hedge contract commits an airline to paying a pre determined price for future jet fuel purchases. Airlines enter into such contracts as a bet that future jet fuel… … Wikipedia
