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Hedge ratio |
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Hedge ratioThe number of futures or options contracts required to hedge/counteract the exposure in the underlying instrument (for example shares, commodities etc).Similar MatchesDelta cross hedgeDelta cross hedgeA futures hedge that has both maturity and currency mismatches with an underlying exposure. Hedge clauseHedge clauseA clause in a research report or any published document, that attempts to absolve the writer of responsibility for the accuracy of information provided. Neutral hedgeNeutral hedgeHedge that is expected to yield a dollar-neutral result of the combined position, regardless of price change in any part of the hedge securities. For any convertible trading at a premium, this ratio is less than 100%. The higher the convertible premium, the lower a ratio must be to be neutral. See: Delta. Short hedgeShort hedgeThe 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. Covered or hedge option strategiesCovered or hedge option strategiesStrategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying. Related: Naked strategies Further SuggestionsAggressive Growth Hedge FundCurrency hedge Buy hedge Hedged portfolio Delta hedge Hedge wrapper Commercial hedgers Inflation hedge hedge Hedged tender Hedge quality Additional hedge Hedge Money market hedge Sell hedge Hedge fund hedge funds Perfect hedge Hedge |
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