Hedging

Business / Taxes / Hedging: Hedging is an investment technique designed to offset a potential loss on one investment by purchasing a second investment that you expect to perform in the opposite way. For example, you might sell short one stock, expecting its price to drop. At the same time, you might buy a call option on the same stock as insurance against a large increase in value.

Dynamic Hedging

Business / Finance / Dynamic Hedging: An asset allocation strategy in which the asset mix is shifted in response to changing market conditions, as in a portfolio insurance strategy, for example. MORE

Cross Hedging

Business / Finance / Cross Hedging: Securities transaction in which the same broker acts as agent for both sides of the trade; a legal practice only if the broker first offers the securities publicly at a price higher than the bid. MORE

Hedging Demands

Business / Finance / Hedging Demands: 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 portf MORE

Links
Home
Glossary
Thesaurus