{"id":25648,"date":"2013-05-17T11:28:46","date_gmt":"2013-05-17T05:58:46","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=25648"},"modified":"2024-04-12T14:18:18","modified_gmt":"2024-04-12T08:48:18","slug":"long-hedge","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/long-hedge\/","title":{"rendered":"Long Hedge"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a ref=\"magnificPopup\" href=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Language-94.png\"><img loading=\"lazy\" decoding=\"async\" width=\"750\" height=\"400\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Language-94.png\" alt=\"Long Hedge\" class=\"wp-image-97240\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Language-94.png 750w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Language-94-300x160.png 300w\" sizes=\"auto, (max-width: 750px) 100vw, 750px\" \/><\/a><\/figure>\n<\/div>\n\n<p>\u00a0A buying hedge is also called a long hedge. Buying hedge means buying a futures contract to hedge a cash position. Dealers, consumers, fabricators, etc, who have taken or intend to take exposure in the physical market and want to lock- in prices, use the buying strategy.<\/p>\n<p><span style=\"line-height: 1.714285714; font-size: 1rem;\">Benefits of buying hedge strategy:<\/span><\/p>\n<ul>\n<li>To replace inventory at a lower prevailing cost.<\/li>\n<li>To protect uncovered the forward sale of finished products.<\/li>\n<\/ul>\n<p>The purpose of entering into a buyer is to protect the buyer against price increase of a commodity in the spot market that has already been sold at a specific price but not purchased as yet. It is very common among exporters and importers to sell commodities at an agreed-upon price for forward delivery. If the commodity is not yet in possession, the forward delivery is considered uncovered. It\u00a0refers to a futures position that is entered into for the purpose of price stability on a purchase.\u00a0Long hedges\u00a0are often used by manufacturers and processors to remove price volatility from the purchase of required inputs.<\/p>\n<p><span style=\"line-height: 1.714285714; font-size: 1rem;\">They are traders and processors who have made formal commitments to deliver a specified quantity of raw material or processed goods at a later date, at a price currently agreed upon and who do not have the stocks of the raw material necessary to fulfil their forward commitment.<\/span><\/p>\n\n\n<p><a href=\"https:\/\/www.vskills.in\/certification\/tutorial\/certified-commodity-trader\/\" target=\"_blank\" rel=\"noreferrer noopener\">Back to Tutorial<\/a><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><a href=\"https:\/\/www.vskills.in\/practice\/commodity-trader\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" width=\"960\" height=\"150\" src=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Core-Java-Developer-3-2.png\" alt=\"certified commodity trader free practice test\" class=\"wp-image-97068\" srcset=\"https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Core-Java-Developer-3-2.png 960w, https:\/\/www.vskills.in\/certification\/tutorial\/wp-content\/uploads\/2020\/12\/Certified-Core-Java-Developer-3-2-300x47.png 300w\" sizes=\"auto, (max-width: 960px) 100vw, 960px\" \/><\/a><\/figure>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>\u00a0A buying hedge is also called a long hedge. Buying hedge means buying a futures contract to hedge a cash position. Dealers, consumers, fabricators, etc, who have taken or intend to take exposure in the physical market and want to lock- in prices, use the buying strategy. Benefits of buying hedge strategy: To replace inventory&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"categories":[3357],"tags":[5486],"class_list":["post-25648","page","type-page","status-publish","hentry","category-commodity-dealer","tag-long-hedge"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Long Hedge - Tutorial<\/title>\n<meta name=\"description\" content=\"Learn more about Long Hedge. Make your resume stand out and become a Certified Commodity Trader. 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