hedge margin

hedge margin

In commodities trading, a special low-margin rate for hedgers such as manufacturers and dealers. The hedge margin is lower because of offsetting positions.
References in periodicals archive ?
legacy carrier group has been pressured over the past year as a result of poor operating trends and the outflow of cash driven by the need to post fuel hedge margin collateral with hedging counterparties.
This press release contains forward-looking statements regarding the company, within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including statements regarding the timing of achieving the full production rate for the San Cristobal project, the release of the hedge margin account in future years, the company's future liquidity, and the company's financial results for the third quarter of 2007.
The Commodity Margin decline was principally attributable to the expiration of a unique legacy arrangement at the end of 2009 and lower average hedge margins in the first quarter of 2010 compared to 2009, as anticipated, resulting from relatively lower hedge prices in 2010 as compared to hedge prices for 2009.