Posting this here. About long and short hedges. https://www.bionicturtle.com/forum/threads/p1-t3-710-long-and-short-hedges-hull-chapter-3.10546/#post-77932
As per this thread short hedge means long basis which means that if the basis strengthens we gain. I.e. the logic is that b/c i go long the...
i am little confused with short&long hedge difference.
In the notes, it says short hedge is agreement to sell in the future.
In later notes, it says key difference is whether future price is determined.
What's the connection between these two statements?
e.g. for the coffee bean farmer...