Double Hedging
Hedging a position by using futures and options, thereby doubling the size of the hedge. The Commodity Futures Trading Commission (CFTC) considers double hedging to be a situation where a trader holds a long futures position in a commodity in excess of the speculative position limit to offset a fixed price sale, even though the trader has ample supplies of the commodity to honor all sales commitments.
Increasing the size of a hedge to a level that is greater than the exposure faced by a firm or individual may take it into the realm of speculation. For example, an investor with a stock portfolio of $1 million who wishes to hedge downside risk in the broad market can do so by buying put options of a similar amount on the S&P 500. Double hedging would occur if the investor also initiates an additional short position in the S&P 500 using index futures contracts.
附件列表
词条内容仅供参考,如果您需要解决具体问题
(尤其在法律、医学等领域),建议您咨询相关领域专业人士。
如果您认为本词条还有待完善,请 编辑
上一篇 Double Barrier Option 下一篇 Double Witching