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hedging

hedging

1 6.6
A way investors use to reduce the chance of losing money by making opposite investments
  • noun
  • /ˈhɛdʒɪŋ/
  • Specialized
translation icon : cobertura
  • Many companies employ hedging techniques to guard against fluctuations in foreign exchange rates.

So it's, it's, it's about hedging our risks.

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Examples

  • So that's the idea of using option as a hedging mechanism.

  • banks, and how banks are hedging their loan books.

  • So these investments have the purpose of hedging, not the purpose of cash flow.

  • So it's, it's, it's about hedging our risks.

  • You're buying a forward contract to fly on that date that is hedging your price risk associated with that air travel.

  • Hedging is a common strategy used by investors to minimize potential losses in the stock market through hedging their investments.

  • By investing in gold as a hedging strategy, the fund aims to protect its portfolio from economic downturns.

Synonyms

protection
vshedging
  • Specialized
195 2.0

Government actions that try to keep local businesses safe from foreign competition

is narrower, focusing on finance methods that offset risk with counter positions
hedge
vshedging
  • Specialized
104 6.9

A way to reduce financial loss by taking opposite investments

is called a strategy or technique rather than a single arrangement
safeguard
vshedging
61 4.0

A way to protect someone or something from harm

is a finance tactic aimed at reducing monetary risk through offsetting investments

Antonyms

speculation
  • Specialized
13 5.5

Buying things like shares or houses that are risky to try to make a large profit

How Protective

insurance
255 2.8
hedging
  • Specialized
1 6.6
diversification
  • Specialized
16 6.1
investment
3.2
speculation
  • Specialized
13 5.5

Surface Forms

hedging singular
hedgings plural

Morphology

hedging = hedge (transparent) = hedge + ing

Regular nominalization from the verb 'hedge' meaning the action or strategy of hedging; formation and meaning are directly derived.

Etymology

Hedging comes from the idea of a hedge, a low fence or row of bushes used to protect a field. In finance, hedging is like putting a fence around your investment to protect it, so you reduce the chance of big losses.