H
Hedge
A position in a derivatives market that is designed to reduce price risk from a physical transaction.
Hedge Ratio
The number of units of an asset to be bought in order to hedge one unit of a liability. For example, the number of units of an underlying asset to be bought to maintain a delta-neutral portfolio or gamma-neutral portfolio) option position.
Heavy Fuel Oil
A refined petroleum product. The heaviest grade of fuel oil tends to be used in ships boilers while lighter fuel oil grades are used in industry (eg the manufacture of steel).
Hematite / Haematite
A common Iron Oxide mineral
Historical Volatility
A calculation of past volatility in the market place based on actual data.
Hydrocarbons
Organic compounds consisting of hydrogen and carbon. They may exist as solids, liquids or gases. Crude oil, refined petroleum products and natural gas are all hydrocarbons.
Click here to return to Dictionary main page
