Definition of "cross-hedge"
  1. The act of securing a cash position through a futures or option contract for a similar yet distinct commodity
How to use "cross-hedge" in a sentence
  1. To protect his investment in gold, the investor decided to cross-hedge with a silver futures contract.
  2. Cotton producers often cross-hedge against price fluctuations by securing futures contracts in similar commodities.
  3. Due to the uncertainty in the market, many started to look at the opportunity to cross-hedge their investments.

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