国际期货市场运作7HedgingwithSpreads.pptVIP

Chapter 7 Hedging with Spreads What is hedging? When a businessperson uses the futures market to protect against adverse price movements, the process is called hedging. Hedging involves taking a position in the futures market that is opposite to the position held in the cash or spot market. Selling Hedge If a businessperson buys a commodity in the cash market, he or she would then hedge that position by selling an equivalent quantity in the futures market. Buying Hedge The buying hedge is used by a businessperson who anticipates buying a commodity at a future date and wants protection