Business and Personal Finance Dictionary

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• ANTICIPATORY HEDGING
  
  Refers to the placement of a hedge prior to placement of the actual position. Sometimes, this occurs when a firm knows that it will receive investment funds later that day or week and prefers to hedge numerous potential risks at the earlier date. Similarly, a commodity producer may prefer to hedge prior to the harvest of a crop, production of an energy product or processing a raw material into a deliverable lot.
  
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