PPRuNe Forums - View Single Post - Get ready for the fuel hedging loss!
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Old 7th Dec 2014, 01:21
  #16 (permalink)  
swh

Eidolon
 
Join Date: May 2001
Location: Some hole
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Headging almost always these days is insuring that the future price paid will not go beyond a limit, it is very expensive just for one way, so on the other side they will also have received a premium for the down side, thus accepting a price band for future contracts. The contracts can be sold at any time before expiry, they are not locked in, the immediate loss is the premium paid.
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