Hedging: Difference between revisions
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imported>Doug Williamson (Link with Effective page.) |
imported>Doug Williamson (Link with The Treasurer.) |
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===Other links=== | ===Other links=== | ||
[[Media:2015_05_May_-_The_devil_is_in_the_detail.pdf| The devil is in the detail, The Treasurer, 2015]] | |||
*[http://www.treasurers.org/node/8925 Harness your hedges, The Treasurer, April 2013] | *[http://www.treasurers.org/node/8925 Harness your hedges, The Treasurer, April 2013] | ||
Revision as of 19:33, 20 November 2015
1.
Traditionally hedging refers to the process whereby a firm uses financial instruments (such as forward contracts, futures contracts or options) or other techniques to reduce the impact of fluctuations in such factors as the market price of credit, foreign exchange rates, or commodity prices on its profits or corporate value.
2.
The application of hedging techniques has been extended to the management of many other risks including for example inflation and longevity risk arising in pension funds.
See also
- Arbitrage
- Authorisation
- Authority limits
- Basis risk
- CertFMM
- Covering
- Delta hedging
- Effective
- Foreign exchange forward contract
- Futures
- Hedge accounting
- Inflation risk
- Interest rate guarantee
- Longevity
- Macro hedging
- MCT
- Option
- Outturn
- Overhedging
- Pre-settlement risk
- Guide to risk management
- Speculation
- Uncovered
- Underhedging
- Warehousing
