| Webster's Online Dictionary |
| Expressions | Domain | Definition | |
| Hedge Ratio | Business | Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk. (references) | |
| Hedge Ratio | Economics | The amount of future exchange contracts, options, or underlying financial instruments, purchased or sold against a position to accomplish a hedge of the position. (references) | |
| Hedge ratio | Finance | The factor by which an option price varies in relation to the price of the investment or asset into which it is convertible; the expected change in an option price as a proportion of a small change in the price of the instrument underlying the option. Source: European Union. (references) | |
Source: compiled by the editor from various references; see credits. | Top | ||
