Hedge: Definition and How It Works in Investing - Investopedia Hedging is a strategy to limit investment risks Investors hedge an investment by trading in another that is likely to move in the opposite direction A risk-reward tradeoff is inherent in
Hedging - Definition, How It Works and Examples of Strategies What is Hedging? Hedging is a financial strategy that should be understood and used by investors because of the advantages it offers As an investment, it protects an individual’s finances from being exposed to a risky situation that may lead to loss of value
Hedge (finance) - Wikipedia Hedging is the practice of taking a position in one market to offset and balance against the risk adopted by assuming a position in a contrary or opposing market or investment
What Is Hedging How Does It Work? Strategies Examples | SoFi • Hedging is a risk-management strategy where one investment is used to offset potential loss in another investment • Common hedging methods include derivatives (options, futures), commodities (gold, oil), or fixed-income investments