Posted 11/10/2007 10:43 (#235234 - in reply to #235009) Subject: RE: Define what Hedge means???
West-central Illinois
Simply put, a hedge is an opposite but equal position in the market. As stated above, if you have (long) 5000 bu of corn in a bin, to hedge that you would go short 5000 bu. The opposite is true if you are a buyer and don't have the corn (short) but want to buy at that price without actually taking delivery of the product, you would go long on a contract.
Define what Hedge means???
