A position established in one market in an attempt to offset the risk of price fluctuations in another opposite position in a different market with the ultimate goal of minimizing unwanted risks. There are many avenues which can accomplish this, the most popular being futures contracts.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser