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Status: Published
Version date: 7 October 2011 - onwards
    Version 1 of 1    

Hedge or Hedging

Conduct that is described as permissible “hedging” activity may differ among jurisdictions. Without limiting the scope of any jurisdiction to adopt its own definition, the term "hedge" or "hedging" generally refers to the taking of a position in a commodity derivative contract opposite to a position held in the physical market to minimize the risk of financial and/or economic loss from an adverse price change, or otherwise for risk management purposes