Double Hedging is a position by using futures and options, thereby doubling the size of the hedge. The Commodity Futures Trading Commission (CFTC) considers double hedging to be a situation where a trader holds a long futures position in a commodity in excess of the speculative position limit to offset a fixed price sale, even though the trader has ample supplies of the commodity to honor all sales commitments.
Posted on: Fri, 12 Jul 2013 07:08:33 +0000
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