Lifting the hedges?

[Jacques]

What is meant by the term "lifting the hedges" in the markets? I am new to
this and I overheard someone mention this in a conversation and I am not
sure by what he meant. The esoteric terms of the trade are a bit daunting
and I like to learn the lingo. Thanks in advance.

[Chet Hayes]

As an example, if a gold producer believed current prices were high
and wanted to lock them in, they could sell short enough gold futures
to cover some period of production. Having done that, they are
hedged. Later, if the price of gold has declined, they might choose
to lift the hedge by buying back some or all of the gold futures.





"Jacques" <Jacques@jacques111.com> wrote in message news:<OI4Ma.51800$2D1.16418217@news4.srv.hcvlny.cv.net>...
> What is meant by the term "lifting the hedges" in the markets? I am new to
> this and I overheard someone mention this in a conversation and I am not
> sure by what he meant. The esoteric terms of the trade are a bit daunting
> and I like to learn the lingo. Thanks in advance.