Hedging strategies using features and options

4.1 Basic Strategies Using FuturesWhile the use of short and long hedges can reduce (or eliminate in some cases- as below) both downside and upside risk. The reduction of upside risk iscertaintly a limation of using futures to hedge.4.1.1 Short HedgesA short hedge is one where a short position is taken on a futures contract. Itis typically appropriate for a hedger to use when an asset is expected...