double hedging

Definition of "double hedging"
  1. When a trader holds a futures contract in surplus of the limit set for speculation, despite having a sufficient supply of the product to fulfill all sale commitments
How to use "double hedging" in a sentence
  1. His method of double hedging was questioned as he already had an ample product supply.
  2. Regulators fined him for taking unnecessary risks with double hedging.
  3. The investigation revealed several cases of double hedging, violating speculative limits.

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