Financial Terms
Additional hedge

Main Page

Alphabetical
Index

SEARCH


Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.

 


Main Page: tax advisor, credit, money, financial advisor, payroll, stock trading, inventory control, business,

 

Also see related: insurance, home financing, first time homebuyer, home buyer, real estate, credit, financing, homebuying, homes,

Definition of Additional hedge

Additional Hedge Image 1

Additional hedge

A protection against borrower fallout risk in the mortgage pipeline.



Related Terms:

Option not to deliver

In the mortgage pipeline, an additional hedge placed in tandem with the forward or
substitute sale.


Additional paid-in capital

Amounts in excess of the par value or stated value that have been paid by the public to acquire stock in the company; synonymous with capital in excess of par.


Additional paid-in capital

Any payment received from investors for stock that exceeds
the par value of the stock.


additional paid-in capital

Difference between issue price and par value of stock. Also called capital surplus.


Covered or hedge option strategies

Strategies that involve a position in an option as well as a position in the
underlying stock, designed so that one position will help offset any unfavorable price movement in the other,
including covered call writing and protective put buying. Related: naked strategies



Delta hedge

A dynamic hedging strategy using options with continuous adjustment of the number of options
used, as a function of the delta of the option.


Hedge

A transaction that reduces the risk of an investment.


Additional Hedge Image 2

Hedge

A securities transaction that reduces or offsets the risk on an existing
investment position.


Hedge fund

A fund that may employ a variety of techniques to enhance returns, such as both buying and
shorting stocks based on a valuation model.


Hedge inventory

Excess inventories kept on hand as a buffer against contingent
events.


Hedge ratio (delta)

The ratio of volatility of the portfolio to be hedged and the return of the volatility of the
hedging instrument.


Hedged portfolio

A portfolio consisting of the long position in the stock and the short position in the call
option, so as to be riskless and produce a return that equals the risk-free interest rate.


Long hedge

The purchase of a futures contract(s) in anticipation of actual purchases in the cash market. Used
by processors or exporters as protection against an advance in the cash price. Related: hedge, short hedge


Money market hedge

The use of borrowing and lending transactions in foreign currencies to lock in the
home currency value of a foreign currency transaction.


Perfect hedge

A financial result in which the profit and loss from the underlying asset and the hedge position
are equal.


Sell hedge

Related: short hedge.


Additional Hedge Image 3

Short hedge

The sale of a futures contract(s) to eliminate or lessen the possible decline in value ownership of
an approximately equal amount of the actual financial instrument or physical commodity.
Related: Long hedge.



 

 

 

 

 

 

Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.


Copyrightę 2019 www.finance-lib.com