Investor Glossary-commercial hedgerInvestor Glossary-commercial hedgerInvestor Glossary-commercial hedgerInvestor Glossary-commercial hedgerInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Commercial Hedger

The HTML to link to this page
 

A commercial hedger is a corporation that attempts to stabilize the price of a commodity by taking a position or stake in the commodities market. Since a commercial hedger uses the commodity to produce its own goods, locking in prices is a favorable strategy. A commercial hedger in the commodities market can be both a manufacturer/producer and an investor in the basic financial market. A commercial hedger might be an airline buying energy futures when crude oil prices per barrel are considered low. When a commercial hedger buys futures to hedge market risk, the commercial hedger is confident that future production costs can be hedged at an advantage. A commercial hedger uses the commodities market to transfer market risk to speculators. A large commercial hedger is referred to as a "large speculative account."



Rate this commercial hedger definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: 1031 exchange, 1035 exchange, EBITDA, retained earnings, covered put, option premium, limit order, margin rate, phantom income, deferred tax, APR, labor relations, current ratio, LIBOR, FTSE, command economy, stock split, 144a, ex-dividend, in escrow, reverse mortgage, quality assurance, Key Rate Duration, implied volatility, per diem, risk management, inflation, dividends payable, stock market close, minority interest, diluted share, annual return, ex-dividend date, VIX, average price per share, open position, 401a, wholly-owned subsidiary, balance sheet, deferred revenue, irrevocable trust, FICO score, cancelled check, class C shares, Zero Cost Collar, real GDP, required rate of return, liquidity ratio, debt service coverage


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use