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Finance · Investment & Markets

Hedge

Noun
US US /hedʒ/ GB UK /hedʒ/
Finance Investment & Markets intermediate

Definition

An investment made to offset potential losses in another position.

Visual Reference

Hedge illustration

Detailed Explanation

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Example

Investors use Hedge to evaluate securities and make portfolio decisions.

In Practice

Also known as: Risk Offset, Protection Trade. Closely related to Derivative, Option.

Video Explanation

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Case Study

Hedge - key concept in Investment & Markets.

Word Usage

Risk management; Portfolio protection; Corporate finance

Finance Investment & Markets

Use Case

Applied in Investment & Markets contexts: Risk management; Portfolio protection

Also Known As

investment-markets

Synonyms

Risk OffsetProtection Trade

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