| Heating Oil |
Common term for #2 fuel oil (i.e. home heating oil). Also used to describe any fuel oil of any grade used for heating purposes. |
| Heavy Crude |
Crude oil with a low API gravity (high specific gravity). |
| Hedge Ratio |
In futures, the ratio of the values of futures contracts purchased or sold to the value of the cash commodity being hedged, computed to minimize basis risk. In options, the ratio determined by the option’s delta, of futures to options required to establish a riskless position. |
| Hedging |
The initiation of equal and opposite positions in the cash and futures market, to minimize the risk of financial loss due to adverse price changes. |
| Hydrocarbons |
Organic compounds containing hydrogen and carbon which form the basis for all types of petroleum and petroleum products. |
