Hedge (Hedging)

A hedge is an investment or a trade to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract or a CFD. By Hedging an investment portfolio or an open position means strategically using instruments available in the market to offset the risk of any adverse price movements. In other words, investors hedge one investment by making another.

By |2018-09-04T13:44:10+00:00September 4th, 2018|0 Comments

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