FREE Guide - 5 Chart Patterns You Need to Know!

Long Hedge


What does Long Hedge mean?

A hedging strategy that involves taking up a long futures position. A producer uses this strategy to hedge against possible increases in prices of the actuals, its raw material, underlying the futures contracts. It is also known as input hedge or buy hedge.

Futures Knowledge Explains Long Hedge

For example, an oil refinery mat buy the long hedge to lock in the price of crude oil and protect against future price volatility. Investors also take a long position in futures contracts in commodities whose prices are like to increase and earn profit.



Get Your FREE Technical Analysis Guide!
Timing is everything, and with this guide, you'll learn how technical analysis can help find the right time to enter and exit your futures trades. Nearly 30 explanations and examples of the most popular technical analysis tools are all in this one handy guide. It's like having a futures trading mentor at your side!