Cross-hedging is characterized by using different types of securities in the spot and futures markets.

Name: Cross-hedging is characterized by using different types of securities in the spot and futures markets.
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Cross-hedging involves using a futures contract on one commodity or financial instrument to hedge the price risk of another related but different commodity or instrument, hence the use of different types of securities.

Cross-Hedging Is Characterized by Using Different Types of Securities in the Spot