Double Hedging

This Issue in United States

Concept of Double Hedging in Futures Trading

In this context of financial law, the following is a definition of Double Hedging: As used by the CFTC, it implies a situation where a trader holds a long position in the futures market in excess of the speculative position limit as an offset to a fixed price sale, even though the trader has an ample supply of the commodity on hand to fill all sales commitments.