Tag: HE
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Hedge Ratio
Concept of Hedge Ratio in Futures TradingIn this context of financial law, the following is a definition of Hedge Ratio: Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk.
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Heavy
Concept of Heavy in Futures TradingIn this context of financial law, the following is a definition of Heavy: A market in which prices are demonstrating either an inability to advance or a slight tendency to decline.
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Head and Shoulders
Concept of Head and Shoulders in Futures TradingIn this context of financial law, the following is a definition of Head and Shoulders: In technical analysis, a chart formation that resembles a human head and shoulders and is generally considered to be predictive of a price reversal. A head and […]
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Hedge Fund
Concept of Hedge Fund in Futures TradingIn this context of financial law, the following is a definition of Hedge Fund: A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically […]
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Hedger
Concept of Hedger in Futures TradingIn this context of financial law, the following is a definition of Hedger: A market participant who enters into positions in a futures or other derivatives market opposite to positions held in the cash market to minimize the risk of financial loss from an […]
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Hedging
Concept of Hedging in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): A trading strategy which is designed to reduce or mitigate risk. A second transaction is entered into to offset the risk of the first.ResourcesSee AlsoDerivatives Contract
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Henry Hub
Concept of Henry Hub in Futures TradingIn this context of financial law, the following is a definition of Henry Hub: A natural gas pipeline hub in Louisiana that serves as the delivery point for New York Mercantile Exchange natural gas futures contracts and often serves as a benchmark for […]
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Hedge Exemption
Concept of Hedge Exemption in Futures TradingIn this context of financial law, the following is a definition of Hedge Exemption: An exemption from speculative position limits for bona fide hedgers and certain other persons who meet the requirements of exchange and CFTC rules.