What is the meaning of Weakening?

Weakening is a hedging or risk management term used to describe the relative loss of value between the underlying market and the hedge vehicle. It suggests that the cash or spot commodity or market is becoming less valuable relative to the futures or forward as defined by the basis.

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APABarry Goldsmith. (2010). weakening. Retrieved September 21, 2026, from http://smartdefine.org/weakening/definitions/1166428
ChicagoBarry Goldsmith. 2010. "weakening" http://smartdefine.org/weakening/definitions/1166428 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, weakening, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/weakening/definitions/1166428>.
MLABarry Goldsmith. "weakening" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/weakening/definitions/1166428>
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