Perfect hedge

Perfect hedge,

Definition of Perfect hedge:

  1. The completely eliminates the risk of the associated investment.

  2. A perfect hedge is a position undertaken by an investor that would eliminate the risk of an existing position, or a position that eliminates all market risk from a portfolio. In order to be a perfect hedge, a position would need to have a 100% inverse correlation to the initial position. As such, the perfect hedge is rarely found.

  3. A common example of a near-perfect hedge would be an investor using a combination of held stock and opposing options positions to self-insure against any loss in the stock position. The downside of this strategy is that it also limits the upside potential of the stock position. Moreover, there is a cost to maintaining a hedge that grows over time. So even when a perfect hedge can be constructed using options, futures and other derivatives, investors use them for defined periods of time rather than as ongoing protection.

Meaning of Perfect hedge & Perfect hedge Definition

Perfect Hedge,

How Do You Define Perfect Hedge?

  1. Perfect Hedge definition is: An investment vehicle designed to reduce the financial risk of investment departments and / or general business activities. Financial risk hedges are usually derived to cover the price risk associated with business activities such as raw material purchases. However, derived hedges are generally not related to the risk they seek to protect, so there is some risk. However, perfect coverage is absolutely risky. When the insurance contract is used to cover these risks, perfect coverage is possible because the insurance is a zero transaction, i.e. the contract pays or does not pay based on the activation of the claim.

Literal Meanings of Perfect Hedge


Meanings of Perfect:
  1. The best item, quality or possible that is requested or desired.

  2. Absolute Absolute (used for emphasis)

  3. (Number) is equal to the number of positive factors, page ... For example. Number 6, whose subtraction (1, 2, 3) is also 6.

  4. (Time) means an action that has been completed or a state of habit or action that has been started in the past. In English, perfect tense is formed with the past participle or being, because they eat and eat (from the time of Fajr) (perfect present), eat (perfect future) perfect)

  5. (Flowers) with current and working stamens and carpels.

  6. (Some) completely error-free or defective or as close as possible to such situations.

  7. Perfect weather

Sentences of Perfect
  1. Life should be incomplete now

  2. Foreigners

  3. Before posting, he also found the upper limits of the smallest calendar of odd perfect numbers.

  4. It has seven heads, has no perfect shape, is fixed with a suffix, and the syntax is baroque.

  5. He is busy completing his bowling technique

Synonyms of Perfect

without fault, out-and-out, best, thoroughgoing, polish, ultimate, quintessential, consummate, faultless, bring to perfection, unqualified, utter, refine, make perfect, exemplary, real, hone, sheer, veritable, put the finishing touches to, downright, total, unalloyed, fine-tune, put the final touches to


Meanings of Hedge:
  1. A fence or barrier made of bushes or shrubs that grows together.

  2. Fenced or attached.

  3. Limit or qualify for terms or costs (whatever).

  4. Protect yourself from losses (bets or investments) by counter-trading or clearance

Sentences of Hedge
  1. He was cutting the fence barefoot in the corner of the courtyard

  2. A garden covered with trees

  3. Experts often cover their predictions, only then

  4. The company secured its investment position in the futures market

Synonyms of Hedge

row of bushes, hedgerow, surround, guard, impede, edge, trap, restrict, enclose, encircle, hinder, bound, protect, circle, confine, insure, cushion, shield, safeguard, border, cover, take out insurance, limit