Buying hedge

buying hedge investment & finance definition
A position that is established by purchasing futures contracts in order to protect against a possible increase in the future cost of commodities. Also called a long hedge.

Definition
Buying Hedge
Hedging transaction in which futures contracts are bought to protect against possible increases in the cost of commodities. See Hedging.
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Buying Hedge - Buying futures contracts to protect against a possible price increase of cash commodities that will be purchased in the future.

Buying Hedge (or Long Hedge): Hedging transaction in which futures contracts are bought to protect against possible increases in the cost of commodities. See Hedging.

BUYING HEDGE - A hedge that is initiated by taking a long position in the futures market equal to the amount of the cash commodity which eventually needed.
CARRYING CHARGE - The cost to store and insure a physical commodity.

Buying Hedge
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Buying Hedge: See Purchasing Hedge.
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Calendar Spread: See Interdelivery Spread and Horizontal Spread.

At the time the cash commodities are bought, the open futures position is closed by selling an equal number and type of futures contracts as those that were initially purchased. Also referred to as a buying hedge. See Hedging.

closing a position. Buy-write see Covered Call. Buying Hedge A hedge initiated by taking a long position in the futures market equal to the amount of the cash commodity which eventually needed.

also called buying hedge. long leg The part of an option spread indicating a commitment to purchase the underlying security. Long Market Value Abbreviated as LMV, which refers to the current market value of stocks held...

[OTS] buying hedge Also called a long hedge. Buying futures contracts to protect against possible increased costs of commodities that will be needed in the future.