Commercial Hedgers

Commercial hedgers

Companies that take futures positions in commodities so that they can guarantee prices at which they will buy raw materials or sell their products.

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Commercial Hedgers

Companies that take positions (often long positions) on the futures market for their operations. That is, commercial hedgers buy futures contracts in order to secure the price for the commodities they will need for their business purposes at a later date. Commercial hedgers seek to reduce the risk of the rising costs of materials later by guaranteeing their prices now.