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 Hart-Scott-Rodino Act:
- Examples arbitrage. Antitrust act administered by U.S. Department of Justice and the FTC that requires an investor to file a form with the government before he acquires an economic interest in the lesser hedging definition.
- Definition Hedge Wrapper:
- Examples in which an investor with a long position in an underlying stock buys an out-of-the-money put and sells an out-of-the-money call. The hedge wrapper defines a range where the stock will be sold at hedging explain.
- Definition Hard Currency:
- Examples A freely convertible currency that is not expected to depreciate in value in the foreseeable future hedging what is.
- Definition Homemade Leverage:
- Examples as individuals borrow (or lend) on the same terms as the firm, they can duplicate the effects of corporate leverage on their own. Thus, if levered firms are priced too high, rational investors will hedging meaning.
- Definition High-Grade Bond:
- Examples A bond with Triple-A or Double-A rating in Standard & Poor's, or Moody's rating system hedging abbreviation.
