NFA Rule: 2-43(b) Rule 2-43(b) effectively eliminates the ability of traders to hedge open positions. In this article we will explore the function and purpose of hedging, the details and rationale behind the NFA’s decision and address some additional impacts of the decision. Hedging – A brief overview: The purpose of hedging typically is to shift or limit the risk associated with adverse price movements associated with an underlying commodity

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Hedging in the Spotlight