Keep the hedge card at your fingertips
Recall the key checks that distinguish a hedge from a speculative add-on.
Core recall What are the three lines every hedge note needs? Covered exposure, open residual exposure, and trigger for changing the hedge. Without all three, "hedged" is too vague for risk review. Compare Hedge or view? The same futures ticket can be hedge or speculation depending on the exposure it is tied to. Objection "The hedge lost money, so it was a bad hedge." Physical inventory gained value while futures sold against it lost money. Your line Judge the hedge against the combined exposure, not the futures leg alone. What happened to inventory plus hedge together? Looking at one leg…
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