TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

selling hedge [2 records]

Record 1 2001-06-15

English

Subject field(s)
  • Finance
  • Market Prices
  • Grain Growing
CONT

A merchant who buys grain in the cash market can protect himself against possible price reductions by selling a futures contract for an equal volume of grain. For example, a primary elevator company which has bought grain from producers and paid cash for it, faces losses if the cash price falls before the grain can be shipped to a terminal and sold. But, by selling a futures contract, the primary elevator company can normally assure itself a price that will cover costs. This is known as a "selling hedge", and is designed to protect crops or inventories against price drops.

French

Domaine(s)
  • Finances
  • Prix (Commercialisation)
  • Culture des céréales
CONT

Le commerçant qui achète du grain au marché au comptant peut se protéger contre les baisses éventuelles en vendant un contrat à terme pour une quantité égale de grain. Ainsi, la compagnie de silos de collecte qui a acheté du grain des producteurs et a payé comptant s'expose à des pertes si le prix au comptant baisse avant que ce grain n'arrive à un silo portuaire et soit vendu. Mais en vendant un contrat à terme, la compagnie peut normalement s'assurer un prix qui couvrira les frais. On appelle cela une «contrepartie de vente», opération qui a pour but de protéger les récoltes ou les stocks contre les baisses de prix.

Spanish

Save record 1

Record 2 1999-03-10

English

Subject field(s)
  • Management Operations (General)
  • Laws of the Market (Economy)
OBS

hedging: ... it consists of counter balancing a present sale or purchase by a purchase of sale of a similar commodity or of a different commodity usually for delivery at some future date. The desired result is that the profit or loss on a current sale or purchase be offset by the loss or profit on the future purchase or sale.

Key term(s)
  • selling hedge
  • hedge selling

French

Domaine(s)
  • Opérations de la gestion (Généralités)
  • Lois du marché (Économie)

Spanish

Save record 2

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