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Futures Contract

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[edit] These contracts are often used to hedge against the price risk. If you ...

Suggestion by Spedidiot on 2008-11-05 21:38:58

These contracts are often used to hedge against the price risk. If you feel natural gas for heating is going to go up, you can buy a futures contract in the summer to guarantee delivery in the winter. The fall back is if prices go down in the winter, it's opportunity cost.

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