hedge
/hɛdʒ/A financial strategy used to reduce risk by taking an offsetting position in a related security.
Investors often hedge their portfolios to protect against market downturns.
Investors often use hedging strategies to protect their portfolios from market volatility.
Hedging involves using derivatives like options or futures to offset potential losses in other investments.
A row of closely planted shrubs or small trees, often used as a boundary or windbreak.
The garden had a beautiful hedge of roses along the fence.
The garden featured a lovely rose hedge along the fence.
Hedges are commonly used in landscaping for aesthetic and functional purposes.
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💡Pro Tip
Financial Hedging
Hedging is commonly used by investors to protect against market volatility.
⚡Gold Rule
Hedging in Finance
Hedging involves taking an offsetting position to reduce risk, not eliminate it entirely.
📖Word Origin
From Middle English 'hegge,' meaning a fence or enclosure, from Old English 'hecg.' The financial sense emerged in the 20th century.
📝Usage Notes
In finance, hedging is a risk management technique. In gardening, a hedge is a living fence.