rolling hedge

rolling hedge definition - finance
A hedge carried over for successive periods in order to keep it in place. This is done because even though the underlying contract might be expiring, the trader still wants to keep the hedge in place. The position in the soon-to-expire contract is sold and the equivalent position is bought in a contract in a future month.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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