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Cross hedging

Definition:

Applies to derivative products. Hedging with a futures contract that is different from the underlying being hedged. Use of a hedging instrument different from the security being hedged. Hedging instruments are usually selected to have the highest price correlation to the underlying.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Baskets of Listed Depositary Receipts

Nasdaq's fund family made of four funds that will track indexes composed of American Depositary Receipts (ADRs) of foreign companies.

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