Anticipatory hedges are not only used by investors. They are also a tool that can be used by businesses, such as farmers. For example, a farmer exports wheat from the United States to England. He will be paid in dollars once the goods reach the final destination, but the shipping time may take several weeks. The farmer is worried that the dollar will lose value over that time period when compared to the pound, so he takes a short position on the dollar so that he can hedge the anticipated decline. This is an anticipatory hedge because the farmer is taking a hedging strategy on a good, in this case the dollar, that he does not have yet.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
anticipatory hedge — A hedge of a yet to be acquired asset or liability. American Banker Glossary … Financial and business terms
anticipatory hedging — Fin hedging carried out before the transaction to which the hedge applies occurs … The ultimate business dictionary
long hedge — Buyer futures contracts to protect against a possible price increase of cash commodities that will e purchased in the future. At the time the cash commodities are bought, the open futures position is closed by selling an equal number and type of… … Financial and business terms
Life Sciences — ▪ 2009 Introduction Zoology In 2008 several zoological studies provided new insights into how species life history traits (such as the timing of reproduction or the length of life of adult individuals) are derived in part as responses to… … Universalium
Walden ou la Vie dans les bois — Couverture illustrée de Walden ou la Vie dans les bois[Note 1] … Wikipédia en Français