Anticipatory Hedge

  

This is kind of like an engagement. You’re claiming your goods ahead of the game, hoping you’ll get what you signed up for in a way that is beneficial.

Basically, anticipatory hedging is what is known as a futures contract. Your goal, in entering this type of contract, would be to bring your risk level down. An example of this might be seen in farming. A farmer may sell corn ahead of time (sometimes before it has even been planted) in anticipation that corn prices he or she is locking in now are higher than they will be later.

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