Meaning CROSS HEDGING: Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying
More terms such as Cross hedging in Dictionary C.
- Definition Consolidation:
- Examples The combining of two or more firms to form an entirely new entity cross hedging definition.
- Definition Consolidated Mortgage Bond:
- Examples A bond that covers several units of property, sometimes refinancing mortgages on the properties cross hedging explain.
- Definition Cap:
- Examples An upper limit on the interest rate on a floating-rate note (FRN) or an adjustable-rate mortgage (ARM cross hedging what is.
- Definition Conversion Feature:
- Examples Specification of the right to transform a particular investment to another form of investment, such as switching between mutual funds or converting preferred stock or bonds to common stock cross hedging meaning.
- Definition Country Risk:
- Examples General level of political, financial, and economic uncertainty in a country affect which the value of loans or investments in that country cross hedging abbreviation.
