risk hedge

(redirected from Risk Hedges)

Risk Hedge

The practice of taking opposite positions in two different but similar assets in order to profit from the price movements between them. See also: Hedge.

risk hedge

The taking of an offsetting position in related assets so as to profit from relative price movements. For example, an investor might purchase futures contracts on gold and sell futures contracts on silver in the belief that gold will become relatively more valuable compared with silver over the life of the contracts.
Mentioned in ?
References in periodicals archive ?
Standard & Poor's believes that the market for interest rate and basis risk hedges enjoys less price volatility and has more liquidity, thus allowing for a lower-rated counterparty without increasing the overall risk to the transactions.
These collateral amounts should be posted in the manner discussed above under "Interest-Rate and Basis Risk Hedges, Collateral Posting Requirements".
7 billion, reflecting slowing demand for interest rate risk hedges amid the ultra-easy monetary stance.