Definition of Hedging

(p. pr. & vb. n.)
of Hedge
  

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Ffithelliad = n. a platting the upper row of rods in hedging

Ffithellu = v. to plat the top row in hedging

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Noun
1. any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change
(synonym) hedge
(hypernym) security, protection
2. an intentionally noncommittal or ambiguous statement; "when you say `maybe' you are just hedging"
(synonym) hedge
(hypernym) evasion, equivocation
(derivation) hedge, fudge, evade, put off, circumvent, parry, elude, skirt, dodge, duck, sidestep

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Noun
1. a fence formed by a row of closely planted shrubs or bushes
(synonym) hedgerow
(hypernym) fence, fencing
(hyponym) privet hedge
2. any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change
(synonym) hedging
(hypernym) security, protection
3. an intentionally noncommittal or ambiguous statement; "when you say `maybe' you are just hedging"
(synonym) hedging
(hypernym) evasion, equivocation
(derivation) fudge, evade, put off, circumvent, parry, elude, skirt, dodge, duck, sidestep

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Verb
1. avoid or try to avoid fulfilling, answering, or performing (duties, questions, or issues); "He dodged the issue"; "she skirted the problem"; "They tend to evade their responsibilities"; "he evaded the questions skillfully"
(synonym) fudge, evade, put off, circumvent, parry, elude, skirt, dodge, duck, sidestep
(hypernym) avoid
(hyponym) quibble
(derivation) hedging
2. hinder or restrict with or as if with a hedge; "The animals were hedged in"
(hypernym) hem in
(verb-group) hedge in
3. enclose or bound in with or as it with a hedge or hedges; "hedge the property"
(synonym) hedge in
(hypernym) enclose, inclose, shut in
4. minimize loss or risk; "diversify your financial portfolio to hedge price risks"; "hedge your bets"
(hypernym) minimize, minimise
(derivation) hedger

A strategy designed to reduce investment risk using call options , put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.

buying one security and selling another in such a way as to produce a riskless portfolio- hence 'hedging your bets'.

Strategy of investing in one or more securities to protect yourself from potential losses in other investments.

Transferring the risk of loss due to adverse price movement through the purchase or sale of contracts in the futures markets. The position in the futures market is a substitute for the future purchase or sale of the physical commodity in the cash market. If the commodity will be bought, the futures contract is purchased (long hedge); if the commodity will be sold, the futures contract is sold (short hedge).

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The buying and selling of futures contracts so as to protect energy traders from unexpected or adverse price fluctuations.

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Buying or selling earlier and more than really needed in order to protect the company against price increases or shortages of commodities or components to realize profits when prices fluctuate.

Placing bets on the opposite side in order to cut losses or guarantee winning a minimal amount of money.