Español
FrançaisHedging
Purchasing a future contract for delivery of a commodity or currency to reduce the risk or adverse price changes occurring from the present to the time the performance the is due. Hedging consists of counterbalancing a present sale o purchase by a purchase or sale of a similar commodity or currency, usually for delivery at some future date. The desired result is that a profit or loss on a current sale or purchase be offset by the loss or profit on the future purchase or sale. See also arbitrage.
