Cross Hedging
Definition
Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets follow similar price trends (e.g., using soybean meal futures to hedge fish meal).
Related Terms Other terms related to 'Cross Hedging' starting with the letter 'C' Canceling Order, Clearing Member, Contract Grades, Cash Market, Commodity Pool Operator CPO Browse by Letter » A B C D E F G H I L M N O P R S T U V W Y
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