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to hedge

to hedge

36 6.7
To protect against financial loss by taking opposite investments
  • verb
  • /hɛdʒ/
  • Specialized
: cubrirse (contra)
  • That's one great way to hedge inflation through real estate.
  • hedge your bets
  • hedge against risk
  • hedge against market risk

So how do we replicate and hedge volatility swaps?

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Examples

  • And to lock it in, you hedge it.

  • How can the firm reduce or hedge these risks?

  • So I use options to hedge and lower my risk.

  • But it's a great way to hedge your bet against the dollar, right?

  • Spending in these areas should be sufficient to hedge against risk, but they should not drive the budget.

    Academic text (2011)
  • Then it decided not to hedge against any outcome.

    Academic text (2016)
  • Meanwhile, the financial people at all these companies are hedging against risks.

    Fiction book (2002)
  • And it's really about hedging against uncertain future cash flows.

  • To hedge against this risk, I recommended that Congress recraft its small seller exception.

    Academic text (2017)
  • Many investors use derivatives to hedge their portfolios against market volatility.

Synonyms

to guard
vsto hedge
41 1.3

To take care to avoid a problem or danger

is more about protecting against possible loss using compensatory measures often in finance
to hedge in
vsto hedge
  • Specialized
1 7.9

Protect money from loss by making other investments that reduce risk

is a broader idea covering general compensatory measures beyond technical finance moves
to hedge one's bets
vsto hedge
  • Informal
1 6.8

To avoid losing by choosing more than one option

focuses more on financial compensatory measures rather than general precautionary support
7.4

To protect yourself from losing money by choosing different plans or investments

is more general and covers compensatory actions beyond just diversification

Antonyms

957 3.0

To do something that may cause harm or lead to loss

388 3.2

Put someone in a situation where they can be harmed by something

Idioms

1 6.8

To avoid losing by choosing more than one option

Very messy and untidy as if after a rough time

Phrasal Verbs

to hedge in
  • Specialized
1 7.9

Protect money from loss by making other investments that reduce risk

1 5.8

Surround a place or person so they cannot move freely

To protect yourself from losing money by choosing different plans or investments

Compounds

hedge fund
  • Specialized
80 6.3

A company that manages money for rich people and uses risky methods to try to make big profits

A tool with sharp blades that cuts and shapes garden hedges

1 3.5

A row of privet bushes planted close together to make a living fence for a garden

1 5.8

A small brown songbird found in hedges and gardens

1 8.8

A plant that lives for many years and spreads by underground stems in wet or shady places

hedge thorn
  • South African
1 9.9

A South African bush with sharp forked branches and fruit like small plums often planted as a fence

A climbing wildflower with twining stems and pink or white trumpet-shaped flowers

8.2

A small tree often grown as a bush to make garden hedges

9.1

A plant with small pale yellow flowers that grows wild along roads and fields

9.9

A plant from Europe with pink or white flowers whose leaves make soap when crushed

A wild plant whose leaves smell like garlic when crushed

7.6

A small purple wild flower that grows in woods and at field edges

A wild plant with leaves that smell like garlic and can be eaten

How Protected

to insure
43 3.5
to hedge
  • Specialized
36 6.7
to speculate
  • Specialized
10 7.0

Surface Forms

hedge infinitive
hedged past
hedged past participle
hedging present participle
hedges third person singular

Etymology

To hedge (verb) in finance comes from making a protective fence, so to hedge is to take steps that help protect you from possible loss.