Meaning HEDGING: A strategy designed to reduce investment risk using call options, put options, short-selling, or futures contracts. A hedge can help lock in profits. Its purpose is to reduce the volatility of a portfolio by reducing the risk of loss
More terms such as Hedging in Dictionary H.
- Definition Hedge:
- Examples A transaction that reduces the risk of an investment hedging definition.
- Definition Holding Company:
- Examples A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors hedging explain.
- Definition Historical Exchange Rate:
- Examples An accounting term that refers to the exchange rate in effect at the time an asset or liability is acquired hedging what is.
- Definition High-Coupon Bond Refunding:
- Examples Replace a high-coupon bond with a new, lower-coupon bond hedging meaning.
- Definition Harmless Warrant:
- Examples Warrant that allows the user to purchase a bond only by surrendering an other bond with similar terms hedging abbreviation.