H

H share

A share of a mainland Chinese company listed on HKEx (the Hong Kong stock and derivatives exchange).

Hedge

The purchase or sale of options or futures contracts as a temporary substitute for a transaction to be made at a later date. Usually it involves opposite positions in the cash or futures or options market.

Hedge ratio

For futures the number of contracts required to hedge one contract’s value of the underlying asset. For options see Delta.

Historical volatility

The annualised standard deviation of percentage changes in futures prices over a specific period. It is an indication of past volatility in the marketplace.

Horizontal spread

A calendar or time spread.

Hors-côte

The market on the Paris Stock Exchange where issues not traded on the official list or second market are traded.