Process of hedging
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 September 2011
DEAR SIR/MADAM,
KINDLY ADVISE ABT HEDGING PROCESS
THANKS
UMESH PATHAK
KINDLY ADVISE ABT HEDGING PROCESS
THANKS
UMESH PATHAK
21 September 2011
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.
A hedge can be constructed from many types of financial instruments, including stocks, ETFs, insurance, forward contracts, swaps, options, many types of over-the-counter and derivative products, and futures contracts. Public futures markets were established in the 19th century[1] to allow transparent, standardized, and efficient hedging of agricultural commodity prices; they have since expanded to include futures contracts for hedging the values of energy, precious metals, foreign currency, and interest rate fluctuations.
A hedge can be constructed from many types of financial instruments, including stocks, ETFs, insurance, forward contracts, swaps, options, many types of over-the-counter and derivative products, and futures contracts. Public futures markets were established in the 19th century[1] to allow transparent, standardized, and efficient hedging of agricultural commodity prices; they have since expanded to include futures contracts for hedging the values of energy, precious metals, foreign currency, and interest rate fluctuations.
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