Hedging with Agricultural Futures
Futures market participants fall into two general categories: hedgers and speculators. The word hedge means protection. The dictionary states that to hedge is “to try to avoid or lessen a loss by making counterbalancing investments…” In the context of futures trading, that is precisely what a hedge is.
This guide will cover:
- The agricultural markets
- Hedging with futures and basis
- Futures hedging strategies
- Options on futures hedging strategies