Long hedge

The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used by processors or exporters as protection against an advance in the cash price.

Similar financial terms

Long-term bonds
Bonds with a maturity of more than 12 years.

Creditors, long
This is all liabilities payable more than one year after the Balance Sheet date. This includes provisions and deferred taxation, loans and debt, including convertible debt, repayable more than one year after the Balance Sheet date.

Current portion of long-term dept
Those liabilities that are payable within the next 12 months, including accounts and taxes payable, and the current portion (12 months' payments) of notes payable and current liabilities.

Other long term liabilities
Value of leases, future employee benefits, deferred taxes and other obligations not requiring interest payments that must be paid over a period of more than 1 year.

Long-term debt to equity ratio
A capitalization ratio comparing long-term debt to shareholders' equity.

Long-term liabilities
Amount owed for leases, bond repayment and other items due after 1 year.

Long-term financial plan
Financial plan covering two or more years of future operations.

Long-term debt ratio
The ratio of long-term debt to total capitalization.

Long-term debt/capitalization
Indicator of financial leverage. Shows long-term debt as a proportion of the capital available. Determined by dividing long-term debt by the sum of long-term debt, preferred stock and common stockholder equity.

Long-term debt
An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Long-term assets
Value of property, equipment and other capital assets minus the depreciation. This is an entry in the bookkeeping records of a company, usually on a "cost" basis and thus does not necessarily reflect the market value of the assets.

Long-term
In accounting information, one year or greater.

Long straddle
A straddle in which a long position is taken in both a put and call option.

Long run
A period of time in which all costs are variable; greater than one year.

Long position
An options position where a person has executed one or more option trades where the net result is that they are an "owner" or holder of options (i. e. the number of contracts bought exceeds the number of contracts sold). Occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock."

Long coupons
(a) Bonds or notes with a long current maturity. (b) A bond on which one of the coupon periods, usually the first, is longer than the other periods or the standard period.

Long bonds
Bonds with a long current maturity. The "long bond" is the 30-year U.S. government bond.

Long
One who has bought a contract(s) to establish a market position and who has not yet closed out this position through an offsetting sale; the opposite of short.

Static hedge
A hedge that does not have to be changed once it is initiated.

Hedge ratio
The percentage of the position in an asset that is hedged with derivatives.

Additional hedge
A protection against borrower fallout risk in the mortgage pipeline.

Short hedge
The sale of a futures contract(s) to eliminate or lessen the possible decline in value ownership of an approximately equal amount of the actual financial instrument or physical commodity.

Perfect hedge
A financial result in which the profit and loss from the underlying asset and the hedge position are equal.

Money market hedge
The use of borrowing and lending transactions in foreign currencies to lock in the home currency value of a foreign currency transaction.

Covered or hedge option strategies
Strategies that involve a position in an option as well as a position in the underlying stock, designed so that one position will help offset any unfavorable price movement in the other, including covered call writing and protective put buying.

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Natural logarithm

Logarithm to the base e (approximately 2.7183).


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