Cross-hedge

Cross-hedge

Hedging a cash market position in a futures contract for a different but price-related commodity.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Commodity exchange
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Related terms

cross-hedging

Financial services; Commodity exchange

Hedging a cash commodity using a different but related futures contract when there is no futures contract for the cash commodity being hedged and the cash and futures markets ...

cross-hedge

Financial services; Commodity exchange

Hedging a cash market position in a futures contract for a different but price-related commodity.

cross hedging

Financial services; General Finance

Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being ...

cross hedge

Banking; Personal banking

A hedge transaction in which a cash market instrument is hedged by an option contract for a different underlying instrument. Sometimes called proxy hedge, surrogate hedge, or ...

delta cross-hedge

Financial services; General Finance

A futures hedge that has both maturity and currency mismatches with an underlying exposure.

margin

Financial services; Commodity exchange

Financial safeguards to ensure that clearing members (usually companies or corporations) perform on their customers' open futures and options contracts. Clearing margins are ...

back pricing

Financial services; Commodity exchange

Fixing the price of a commodity for which the commitment to purchase has been made in advance. The buyer can fix the price relative to any monthly or periodic delivery using the ...

cost of carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...

carry

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...

carrying charge

Financial services; Commodity exchange

For physical commodities such as grains and metals, the cost of storage space, insurance, and finance charges incurred by holding a physical commodity. In interest rate futures ...