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Somerville, Indiana | good explanation, but hedge in an ideal world would be passing the risk of the price moving against us on to someone else who thinks differently and is willing to take the chance. with a hedge, the product is there for security - no wild chance to make money. when someone takes our hedge, he is speculating on the market or basis moving against us - the more educated he is on marketing the less chance we have on coming out with more $$$$. However he IS speculating on market moving with no grain to offset the loss if the position moves against him. | |
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Define what Hedge means???
