Hedging Transaction

Hedging Transaction,

Hedging Transaction Definition:

  1. Definition of Hedging Transaction: Derivative transactions that occur at any time and (1) reduce the risk of financial loss due to a change in value, production, value, cash flow or amount of assets or liabilities through which the acquisition or support is obtained. ۔ The insurer either seeks to acquire, reduce or incur, or (2) the risk of financial loss due to a change in exchange rates or the acquisition of foreign currency assets or liabilities, which is incurred. Has faced or is about to achieve. Insurance company.

  2. Hedging is a strategy that investors use to reduce the risk of losing money (or running a deficit) as they implement their investment strategy. These transactions are usually derivatives, such as options or futures, but they can also be reversed assets. Coverage can take many forms. Although commonly used to limit losses on a position if the initial investment thesis is incorrect, they can also be used to guarantee certain benefits. Hedging is a common tool for companies and portfolio managers who want to reduce the risk of their overall portfolio.

    • Hedging transactions are usually the purchase of derivatives to reduce investment risk.
    • In this transaction, options, futures agreements or futures agreements are used as insurance.
    • More sophisticated hedges can be created with inverted bonds.

  3. Hedging Transaction means: Transactions in which a person tries to avoid fluctuations in prices, interest rates or exchange rates, for example buying or selling commodity contracts such as futures, futures, options and exchanges for goods or currencies ۔

Literal Meanings of Hedging Transaction


Sentences of Hedging
  1. Employment contract for deck and water landing

Synonyms of Hedging

blarney, smooth talk, honeyed words, blandishments, flattery


Meanings of Transaction:
  1. An example of buying or selling something in a company.

Sentences of Transaction
  1. Delivery date is mandatory in normal business transactions

Synonyms of Transaction

pact, arrangement, affair, settlement, negotiation, undertaking, contract, bargain, deal, agreement, bond, treaty, compact, business