Glossary
Hedge
Offsetting a risk with a counter-position
Hedging is taking an offsetting position so a loss on one side is cushioned by a gain on the other. Like insurance it limits big losses, but it costs something and can trim your upside.
Glossary
Offsetting a risk with a counter-position
Hedging is taking an offsetting position so a loss on one side is cushioned by a gain on the other. Like insurance it limits big losses, but it costs something and can trim your upside.