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Anticipatory hedging

• Refers to the placement of a hedge prior to placement of the actual position. Sometimes, this occurs when a firm knows that it will receive investment funds later that day or week and prefers to hedge numerous potential risks at the earlier date. Similarly, a commodity producer may prefer to hedge prior to the harvest of a crop, production of an energy product or processing a raw material into a deliverable lot.

 
 Embedded terms in definition
 Commodity
Crop
Firm
Hedge
Lot
Placement
Position
Production
Will
 
 Related Terms
 Actual hedging
Cross hedging
Dynamic hedging
Hedging
Hedging demands
Hedging paradox
Hedging strategies
Theory of cross hedging
Theory of hedging

<< Anticipation Antidilutive effect >>

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