1	Tailing the Hedge		_____	Hedges that involve taking a long position
2	Hedge Ratio		_____	The difference between spot price of an asset to be hedged and futures price of contract used
3	Stack and Roll		_____	The relationship of the size of a position in a hedging instrument to the size of the position being hedged
4	Hedge		_____	The maximum loss from default by a counterparty
5	Exposure		_____	Hedge which is appropriate when the hedger already owns an asset and expects to sell it at some time in the future
6	Perfect Hedge		_____	Hedging an exposure to the price of one asset with a contract on another asset
7	Short Hedge		_____	Procedure where short-term futures contracts are rolled forward so that long-term hedges are created
8	Long Hedge		_____	The risk to a hedger arising from uncertainity about the basis at a future time
9	Basis		_____	A trade designed to reduce risk
10	Basis Risk		_____	A procedure for adjusting the number of futures contracts used for hedging to reflect daily settlement
11	Cross Hedging		_____	An hedge which completely eliminate risk
12	Stock Index		_____	An index monitoring the vale of a portfolio of stocks