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Glossary of Terms

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  • Hedging

    A trading method which is designed to reduce or mitigate risk. Reducing the risk of a cash position in the futures instrument to offset the price movement of the cash asset. A broader definition of hedging includes using futures as a temporary substitute for the cash position.

  • Holder

    A term describing a person who has bought a derivatives contract that creates an open long position.

  • Holding Company

    A company which owns more than 50% of the shares of another company is its holding company.



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