Posted 11/10/2007 09:06 (#235175 - in reply to #235096) Subject: RE: Define what Hedge means???
Hedge is the short sale of a future. You would use a hedge because you are long the
commodity of that future contract. I would use a hedge to capture the carry in the
market, or to price my grain for a future delivery date so i could wait for a better
basis. you could also (buy a put), that would give you the right to a short future,
it would also be a hedge.
Define what Hedge means???
