What is hedger?Hedger
Someone who has (or will have) the physical goods and takes an opposite futures position to lock in a price, aiming to cut risk rather than profit from price moves.
Learn “hedger” in an animated lesson
- Futures BasicsHedgers and Speculators
Selling the same wheat future, a farmer with wheat is "buying insurance" while a trader without wheat is "placing a bet". The basis decides how precisely a hedge locks in the price.
- Futures BasicsWhat Are Futures?
A farmer and a bakery agree today on the price of wheat in 3 months. That's a futures contract: a standardized agreement to buy or sell at a fixed price in the future.
Related terms
See how “hedger” works for yourself with an animation you can drag and play.
Go to “Hedgers and Speculators”