Hedge
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A term for reducing the risk of one position by taking other positions with options, futures or other derivatives. A transaction that reduces the risk of an investment. |
Related Terms: | ||
Hedging A strategy designed to reduce investment risk using call options, put options, short-selling, or futures contracts. ... Derivatives Derivatives are financial instruments whose value is based on the market value of an underlying asset ... Hedger A trader who enters the market with the intent to protect a position in the underlying ... |
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