short hedge

(redirected from Selling Hedge)

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.

short hedge

An investment transaction that is intended to provide protection against a decline in the value of an asset. For example, an investor who holds shares of Nextel and expects the stock to decline may enter into a short hedge by purchasing a put option on Nextel stock. If Nextel does subsequently decline, the value of the put option should increase.
References in periodicals archive ?
Chapter Three: Key Considerations in Selling Hedge Funds to European Investors Dechert LLP.
Topics Covered Foreword Introduction Chapter One -- London, the Financial Services and Markets Act Chapter Two -- Key considerations in structuring a hedge fund Chapter Three -- Capital raising Chapter Four -- Key considerations in selling hedge funds to European investors Chapter Five -- Key considerations in selling hedge funds to US investors Chapter Six -- Institutions Chapter Seven -- Prime brokerage Chapter Eight -- Hedge funds: an accountant's perspective Chapter Nine -- Fund administration: why selecting the right administrator Chapter Ten -- Equalisation Chapter Eleven -- Executive summary: managing the start-up process Chapter Twelve -- Preparing for due diligence Chapter Thirteen -- Regulatory issues across Europe Appendix: Where to set up and, perhaps, manage a hedge fund?
Legal and fiscal risks in structuring and selling hedge funds in Germany
Short Selling hedge funds took advantage of the pullback in equities to post their first average monthly gain, 1.
The big winners in 2002 were Short Selling hedge funds, which bet on falling, rather than rising, stock prices.
Not surprisingly, Short Selling hedge funds were among the most successful in January as the ongoing Enron scandal spooked investors.
Despite their recent losses, however, Short Selling hedge funds continue to show solid gains for the year to date.
We've already built the technology and membership base to successfully connect buyers and sellers of hedge funds via the Internet, and by offering these types of services we're providing the community with a simplified, centralized process of buying and selling hedge funds.
and Offshore Short Selling hedge funds with substantial profit opportunities.
Scandinavian airline SAS has already announced that it is to restart hedging after being left exposed in the first quarter of 2004 and Swiss International Air Lines is facing potential losses after selling hedges to raise cash.