Hedging: Difference between revisions
imported>Doug Williamson (Link with Pre-hedging page.) |
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Following such successful structuring, the organisation may then be said to be 'naturally' hedged. | Following such successful structuring, the organisation may then be said to be 'naturally' hedged. | ||
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* [[Arbitrage]] | * [[Arbitrage]] | ||
* [[Authorisation]] | * [[Authorisation]] | ||
* [[Covering]] | * [[Covering]] | ||
* [[ | * [[Deal contingent forward]] | ||
* [[Delta hedging]] | * [[Delta hedging]] | ||
* [[Effective]] | * [[Effective]] | ||
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* [[Hedge accounting]] | * [[Hedge accounting]] | ||
* [[Hedge fund]] | * [[Hedge fund]] | ||
* [[Interest rate guarantee]] | * [[Interest rate guarantee]] | ||
* [[Macro hedging]] | * [[Macro hedging]] | ||
* [[Option]] | * [[Option]] | ||
* [[Outturn]] | * [[Outturn]] | ||
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* [[Reduce]] | * [[Reduce]] | ||
* [[Risk response]] | * [[Risk response]] | ||
* [[Speculation]] | * [[Speculation]] | ||
* [[Transfer]] | * [[Transfer]] | ||
* [[Uncovered]] | * [[Uncovered]] | ||
Revision as of 09:53, 4 August 2018
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.
Other techniques may operational or structural responses, for example re-locating manufacturing or assembly to align the currencies of costs with revenues.
Following such successful structuring, the organisation may then be said to be 'naturally' hedged.
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
- Covering
- Deal contingent forward
- Delta hedging
- Effective
- Foreign exchange forward contract
- Futures
- Guide to risk management
- Hedge accounting
- Hedge fund
- Interest rate guarantee
- Macro hedging
- Option
- Outturn
- Overhedging
- Pre-hedging
- Pre-settlement risk
- Reduce
- Risk response
- Speculation
- Transfer
- Uncovered
- Underhedging
- Warehousing
