Hedging

Hedging
Investment strategy that aims at reducing investment risk. Call and put options, futures contracts and short selling are all used for this purpose. A hedge may be used to protect existing profits or restrict portfolio volatility of a portfolio, by insulating against the possibility of losses.

Related posts:

  1. Dynamic Hedging
  2. Hedge Ratio (Delta)
  3. The Basics of Dynamic Hedging
  4. Hedging Demands
  5. Who Should Get Involved in Short Selling

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