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| Hard currency |
Any one of the major world currencies that is well traded and easily converted into other currencies. |
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| Head and Shoulders |
A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
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| Hedge Fund |
A private investment fund or pool that trades and invests in various assets such as securities, commodities, currency, and derivatives on behalf of its clients, typically wealthy individuals |
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| Hedge Ratio |
Ratio of the value of futures contracts purchased or sold to the value of the cash commodity being hedged, a computation necessary to minimize basis risk. |
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| Hedging |
Taking a position in a futures market opposite to a position held in the cash market to minimize the risk of financial loss from an adverse price change; or a purchase or sale of futures as a temporary substitute for a cash transaction that will occur later. One can hedge either a long cash market position (e.g., one owns the cash commodity) or a short cash market position (e.g., one plans on buying the cash commodity in the future).
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| Hedge |
The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market. |
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| Hedged position |
One open buy position and one open sell position in the same currency. |
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| Hit the bid |
Acceptance of purchasing at the offer or selling at the bid. |
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| Holder |
The purchaser of a Financial Instrument ( Stock, Commodities, Currencies). Also known as the Instrument buyer. |
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