Options and FuturesOpen Market Operation Premium (options) Daily Trading Limit In-the-Money Option Time and Sales Ticker Floor Trader (FT)
Hedger
As a knowledgeable professor in finance, it is important to understand the concept of hedging. This refers to an individual or company who owns or plans to own a cash commodity, such as corn, soybeans, wheat, or U.S. Treasury bonds, and is concerned about potential changes in its cost before buying or selling it in the cash market. In order to protect against price fluctuations, a hedger will purchase or sell futures contracts for the same or similar commodity. These positions are later offset by selling or purchasing futures contracts of the same quantity and type as the initial transaction. This allows for a sense of security in the volatile market of cash commodities.
Related terms
Understand the meaning and definition of Open Market Operation in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Premium (options) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Daily Trading Limit in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of In-the-Money Option in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Time and Sales Ticker in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Floor Trader (FT) in the context of stock market, trading, and investments.
MORE
Explore other categories
10 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
