What is the Financial Hedge?
A basic hedge agreement between energy project owner and energy user is called a Contract for Differences (CFD). The CFD has a long history in commodity markets as a financial hedge between producers and users.
The CFD is not a speculative instrument. It is meant to benefit both parties to the contract. It helps assure that producers get a fair price for what they sell into the market, and that users pay a reasonable price for what they buy.
Click below (How Does the Hedge Work?) for more details
