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| A hedge by definition: To take compensatory measures so as to counterbalance possible loss.
A HTA is but one way for a grain producer to counterbalance a possible loss. As stated before, a cash sale, long put, and short futures are another way to counterbalance the possible loss. Just because a "HTA" has the word "Hedge" does not mean that it is the only way to hedge. HTA's are also known as "Futures Only" and NBE (No Basis Established) contracts. | |
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Define what Hedge means???
