long hedge

Long hedge

The purchase of a futures contract in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price. Related: hedge, short hedge

Long Hedge

The purchase of a futures contract with the intention of accepting delivery of the underlying asset. One conducts a long hedge in order to lock in a price for an asset one must purchase in the future. This protects the holder of the futures contract from volatility in the underlying asset's price. If the spot price of the underlying asset moves in a direction more beneficial for the holder, he/she can sell the futures contract and buy the asset at the spot price. An example of a long hedge is a situation in which a company needs to buy oil by June. The spot price of oil may be $70 per barrel, but the futures price for June delivery may be only $60. The company would choose to buy the futures contract at $60 per barrel. A long hedge is also called a buy hedge.

long hedge

The purchase of a futures contract or call option to protect a short position against possible increases in the prices of commodities, currencies, indexes, or securities. For example, an investor might purchase a futures contract on fixed-income securities to protect against a decline in interest rates. Also called buying hedge.
References in classic literature ?
Lucy hurried out of the room, but Maggie did not take the opportunity of opening her book; she let it fall on her knees, while her eyes wandered to the window, where she could see the sunshine falling on the rich clumps of spring flowers and on the long hedge of laurels, and beyond, the silvery breadth of the dear old Floss, that at this distance seemed to be sleeping in a morning holiday.
Manor Farm is approached over a long hedge and tree-lined drive with turn-circle.
The 70-metre long hedge is expected to be fully-grown in two years.
The museum hopes that the 80-metre long hedge of more than 400 trees will help recreate the setting around St Teilo's church, which was moved stone by stone from its original location outside Pontarddulais, near Swansea, to its new home at St Fagans.
Louis Chemical would buy a sufficient number of futures contracts to create the long hedge.
If the height of a long hedge has to be reduced, paint on a marker line with whitewash although on shorter runs a straight-edge or garden line is best.
Two of the three gallops managed by Jockey Club Estates are already back in operation sooner than anticipated, and the woodchip surface at Long Hedge, which suffered the most severe damage, will be repaired within a few days.
The other type of hedge is an initial buy position in the futures market called a long hedge.
My husband and I dug up an orchard of peonies, and they grew into a long hedge.
There have also been more than 500 shrubs and bushes planted and a half-mile long hedge put in around the lake.