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Hedging - what is it? The meaning of a word, definition, origin, translation

Hedging

Hedging is a term from the field of investment, which is sometimes used in a more general context as a synonym for the word "protection, reinsurance." The word hedge in English means "hedge".

In the traditional sense, "hedging" means protection against the risks associated with sharp fluctuations in stock prices. This protection is created by buying futures for a sharp decline in quotations of those shares that are in the portfolio. In the event of a sharp drop in the share price of any stock, the investor receives a reward on the futures and thus compensates for the losses.

In a broader sense, "hedging" means taking action to protect against possible trouble. In this sense, ordinary property insurance is also a hedge.




The hedging is in the list: Finance


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