Hedger

What is Hedger?

Hedger meaning A market participant who enters into positions in a futures or other derivativesmarket opposite to positions held in the cash market to minimize the risk of financial loss from an adverse price change; or who purchases or sells futures as a temporary substitute for a cash transaction that will occur later. One can hedge either a long cash market position (e.g., one owns the cash commodity) or a short cash market position (e.g., one plans on buying the cash commodity in the future).

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

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