A hedger's cash commodity and the commodities traded on an exchange are not always of the same type, quality, or grade. Therefore, a hedger may have to select a similar commodity (one with similar price movement) for his hedge. This is known as a "cross-hedge."
CROSS-HEDGE
Meaning of CROSS-HEDGE in English
A guide to futures and options market technology English dictionary. Английский словарь-руководство по фьючерсам и опционам рыночных технологий . 2012