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What will one do if the period of Hedge is longer than available Futures?

April 26, 2017Futures hedge longer period

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What will one do if the period of Hedge is longer than available Futures?

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In such an event one can Roll forward a Hedge. This implies closing one Future position and taking the same position on another Future with the same specifications but having a later delivery date. However, this leaves the basis-risk open for uncovered period at the initial stage.