Hedging

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Tags: Trading
Categories: Forex

A type of transaction that limits investment risk with the use of derivatives, such as options and futures contracts. Hedging transactions purchase opposite positions in the market in order to ensure a certain amount of gain or loss on a trade. They are employed by portfolio managers to reduce portfolio risk and volatility or lock in profits. Hedge funds use this sort of transaction extensively.

Hedging (Wikipedia)

A hedge is a line of closely spaced shrubs planted to act as a barrier or boundary.

Hedge or Hedges may also refer to:

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