HomeDefinitionsCompareDebt Cross hedgingThe financial definition for Cross hedging: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 hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying. Similar MatchesHedgingHedgingA strategy designed to reduce investment risk using call options, put options, short-selling, or futures contracts. A hedge can help lock in profits. Its purpose is to reduce the volatility of a portfolio by reducing the risk of loss. Hedging demandsHedging demandsDemands for securities to hedge particular sources of consumption risk, beyond the usual mean-variance diversification motivation. Selective hedgingSelective hedgingProtecting investments during some time periods and not during others. Click to compare definitions of Cross hedging Click to view definitions beginning cr |