CROSS HEDGING


Meaning of CROSS HEDGING in English

The practice of hedging with a futures contract that is different from the underlying being hedged. Applies to derivative products. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected with the highest price correlation to the underlying.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.