risk hedge

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 ?
Global growth and risk concerns appear to have investors recognising gold's use as a risk hedge.
Scheduled guest speakers include globally famous economists and risk hedge experts to discuss the role of precious metal investing in the current unsettled global macro-economic environment.
Now that the market has established itself as a high yield, low beta risk hedge, investors are flooding to the market increasing the viability for new products and raising the demand for education.
Commodity futures trading is an important industrial foundation that serves as a pricing referent for natural resources and also acts as a risk hedge for related industries to help them avoid suffering damage from major price changes.
intermittency, reliability, systems integration) and regulatory uncertainty are hampering broader adoption of RE as a risk hedge proposition.
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.
7 billion, reflecting slowing demand for interest rate risk hedges amid the ultra-easy monetary stance.

Full browser ?