Definition of long hedge

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TeachMeFinance.com - explain long hedge



long hedge -- the purchase of futures contracts to compensate for a rise in the price of a commodity or financial instrument. A long hedge is often used to lock in the yield (or cost) of an anticipated cash market purchase or to "shorten" the maturity of a liability.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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