Pre-hedging, or anticipatory hedging, is one of many risk management tools often used in principal-based OTC markets, such as commodities, foreign exchange (FX), or interest rate swap.
Commodity Futures Trading Commission CFTC enforcement actions pre hedging large commodity trades foreign exchange FX, interest rate swaps Trading by broker dealer to hedge their risk or a market manipulation European Securities Markets Authority also looking at pre hedging trades
On Tuesday, 1618 stocks advanced, 1873 declined and 149 remained unchanged on the Bombay Stock Exchange (BSE), with an advance decline ratio of 0.86, indicating a negative closing of stocks in broader markets.