Definition of Hedging:
Risk management strategy that limits or compensates for possible losses due to fluctuations in the price of commodities, currencies or bonds. In fact, coverage without insurance is risk transfer.
Hedging uses a variety of techniques, but basically involves taking equal and opposite positions in two different markets (such as the spot market and the futures market). Hedge to protect your capital from the effects of inflation. Also works for investing in instruments (bonds, securities, shares), real estate or precious metals.
Trim plants or hedges.
Synonyms of Hedging
Canniness, Shifting, Special treatment, Parrying, Deliberation, Unprecipitateness, Captious, Flattery, Carefulness, Grain of salt, Heedfulness, Qualification, Extenuating circumstances, Evasive, Exemption, Guardedness, Blarney, Logic-chopping, Quibbling, Circumspection, Pawkiness, Specialness, Concession, Safety first, Trifling, Equivocatory, Prior consultation, Caviling, Salvo, Cautiousness, Regardfulness, Heed, Safeness, Limitation, Reservation, Modification, Tergiversation, Solicitude, Gingerliness, Allowance, Prudentialness, Cession, Chicanery, Boggling, Picayune, Smooth talk, Hairsplitting, Petty, Dodging, Trichoschistism, Equivocation, Trivial, Fencing, Blandishments, Restriction, Special case, Grant, Exception, Shuffling, Tentativeness, Chicane, Deliberateness, Subterfuge, Thoroughness, Calculation, Bickering, Trichoschistic, Hedge, Sidestepping, Prevarication, Care, Choplogic, Paltering, Uncommunicativeness, Hesitation, Captiousness, Judiciousness, Circumscription, Caution, Pussyfooting, Discretion, Prudence, Specification, Pettifoggery, Deliberate stages, Slowness to act, Waiver, Honeyed words, Mindfulness, Nit-picking, Mental reservation, Evasion, Careful consideration
How to use Hedging in a sentence?
- Attached fences and trenches.
- Rex was always a little nervous when Norman's broker covered his investment, but Norman assured him that it was a shared risk management strategy and was just a small exchange between accounts.
- If you are making a particularly risky investment, it is advisable to protect your stake so as not to waste it all.
- Betting on a risky investment can save you more than you can afford.
Meaning of Hedging & Hedging Definition