Skip to main content
Learn

What Is the Primary Goal of a “Short Hedge”?

To protect against a decline in the price of an asset already owned by locking in a future selling price.
Greeks.Live24.11.25

What Is the Primary Goal of a “Short Hedge”?

The primary goal of a short hedge is to protect against a potential decline in the price of an asset that an entity already owns or expects to receive in the future. By selling a futures contract today, the hedger locks in a future selling price, thereby mitigating the risk of adverse price movements in the spot market.

What Is “Protocol Owned Liquidity” (POL) and Why Is It Important for a DAO Treasury?
What Is the Primary Purpose of Selling (Writing) a Covered Call Option?
How Does the Concept of a Short Hedge Apply to Traditional Commodity Producers?
Why Do Options Deep OTM/ITM Have Low Gamma Regardless of Implied Volatility?

About

Contact

Editorial Policy

Terms of Service

Privacy Policy

Cookie Policy

© 2025 Greeks.Live

All Rights Reserved

Greeks.Live RFQ

Build by Noo on Engine

Source: The content on this website is produced by Greeks.live's proprietary analysis systems, which utilize advanced Large Language Models (LLMs). This information might not be subject to a full human review before publication and may contain errors.
Responsibility: You should not make any financial decisions based solely on the content presented here. We strongly urge you to conduct your own rigorous due diligence and to consult a qualified, independent financial advisor.
Purpose: All information is intended for informational purposes only. It should not be construed as financial, investment, trading, or any other form of professional advice. News and data are not trading signals.
Risk: The cryptocurrency, derivatives, and options markets are highly volatile and carry significant risk. By using this site, you acknowledge these risks and agree that Greeks.live and its affiliates are not responsible for any financial losses you may incur.