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Short Hedge |
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Short hedge The sale of futures contracts to eliminate or lessen the possible decline in value of an approximately equal amount of the actual financial instrument or physical commodity. Related: Long hedge. Short Hedge The sale of a futures contract or option on a security or commodity one owns in order to hedge against the risk of decline in its price. In a short hedge, the price of the futures contract or option should move inversely to the price of the underlying asset. It is also called a selling hedge.
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