Macrohedging uses a derivative contract, such as a futures or forward contract, to hedge a particular asset or liability risk.

Name: Macrohedging uses a derivative contract, such as a futures or forward contract, to hedge a particular asset or liability risk.
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Macrohedging involves using derivative contracts to manage the risk of an entire portfolio or aggregate exposure, rather than hedging a specific asset or liability.

Macrohedging Uses a Derivative Contract, Such as a Futures or Forward