Hedge

What is it? A strategy used to offset investment risk. In investing, hedging involves the purchase of an offsetting position, such as a put option or futures contract, to guard against the risk of a market decline. Often used as a defensive strategy in portfolios investing in non-U S. securities to reduce the negative effects of unfavorable moves in currency exchange rates.

Added By: Angelina

Send To Friends!

If you'd like to send the Hedge definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Hedge. If you need any more information on this term, please don't hesitate to contact us.