1 Haircut
The collateral, over and above the market value of the security, required by the lender when a security is borrowed.
2 Hazard Rate
Measures probability of default in a short period of time conditional on no earlier default.
3 HDD
Heating degree days (HDD). The maximum of zero and the amount by which the daily average temperature is less than 65° Fahrenheit. The average temperature is the average of the highest and lowest temperatures (midnight to midnight). The Chicago Mercantile Exchange began trading weather futures and European options on weather futures in September 1999. The contracts are on the cumulative HDD and cooling degree days (CDD) for a month observed at a weather station.
4 Hedge
The forward markets allow users to hedge, or reduce the risk of, adverse currency fluctuations. Hedging is taking a position in two or more securities that are negatively correlated (taking opposite trading positions) to reduce risk.
5 Hedge Fund
Hedge funds are a type of investment...
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2006 Springer Science+Business Media, Inc.
About this entry
Cite this entry
(2006). H. In: Lee, CF., Lee, A.C. (eds) Encyclopedia of Finance. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-26336-6_8
Download citation
DOI: https://doi.org/10.1007/978-0-387-26336-6_8
Publisher Name: Springer, Boston, MA
Print ISBN: 978-0-387-26284-0
Online ISBN: 978-0-387-26336-6
eBook Packages: Business and Economics