Hedging with Agricultural Futures

Hedging with Ags

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


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