Monday, July 25, 2011

Hedging – What Is It, And It’s Uses In Risk Management

The second of a two part article….Before I discuss the use of hedging to off-set risk, we need to understand the role and the purpose of hedging.  The history of modern futures trading begins in Chicago in the early 1800’s. Chicago is located at the base of the Great Lakes, close to the farmlands and cattle country of the U.S. Midwest making it a natural center for transportation, distribution and trading of agricultural produce. Gluts and shortages of these products caused

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