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Finance · Advanced Finance

Hedging

Noun
US US /ˈhedʒɪŋ/ GB UK /ˈhedʒɪŋ/
Finance Advanced Finance advanced

Definition

Using financial instruments to offset the risk of adverse price movements.

Visual Reference

Hedging illustration

Detailed Explanation

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Example

Hedging is used by financial analysts and portfolio managers for complex modeling.

In Practice

Also known as: Risk Offset, Protection. Closely related to Derivatives, Futures.

Video Explanation

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Case Study

Hedging - key concept in Advanced Finance.

Word Usage

Corporate risk management; Commodities; Foreign exchange

Finance Advanced Finance

Use Case

Applied in Advanced Finance contexts: Corporate risk management; Commodities

Also Known As

advanced-finance

Synonyms

Risk OffsetProtection

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