Inventory created to protect against a possible future event or disruption in supply, such as a strike, major vendor shutdown, prospective trade or government program change, or similar situation.
A hedge position taken in anticipation of a future buy or sell transaction. An anticipatory hedge is used when an investor intends on entering the market and wants to reduce his or her risk by taking a long or short position in the target security. This type of hedge typically involves taking a long position, but can also involve short positions.
