Double Hedging

What is Double Hedging?

Double Hedging meaning As used by the CFTC, it implies a situation where a trader holds a long position in the futures market in excess of the speculative position limit as an offset to a fixed price sale, even though the trader has an ample supply of the commodity on hand to fill all sales commitments.

 

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