# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Long Hedge

A hedging position involving the purchase of futures contracts to give an investor or trader protection against a price rise in the corresponding cash markets. A company may decide to lock in the price of a commodity it knows it will have to buy in a few months by buying futures now. A long hedge can also be used to hedge against a short position that has already been taken out. The opposite of short hedge.