Exact(3)
Like many airlines, United buys futures contracts for oil to protect itself against sudden price increases.
Ms. Wintz says she buys futures contracts for pounds, euros and other currencies up to several months before meetings in overseas destinations.
Reilly thinks the ETF is a disaster for the investors picking up the tab because it buys futures in a bid to track a thin underlying market.
Similar(57)
FUTURES CONTRACTS A slightly more complex but relatively inexpensive way to manage losses is to buy futures contracts that bet an index will fall in value.
Selling futures is called a short hedge; buying futures is called a long hedge.
Instead, they buy futures and options which they settle with a cash payment when they fall due.
"I mentioned if I were to buy futures in a political candidate," he recalls, "I'd buy Evan Bayh".
He may prefer buying futures to buying in the cash market (spot or forward) if current cash prices are high because of scarcity.
And why, on Friday, January 18th, when he was already caught but not everything was discovered, did he frantically continue to buy futures?
And if you buy futures, you could lose money if the price of the underlying investment doesn't react as much as you expect.
The hedging is done by buying futures contracts of the raw material equal in quantity to what is needed to fulfill the forward commitment.
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