hedge
Definition
An investment made in order to reduce the risk of adverse price movements in a security, by taking an offsetting position in a related security, such as an option or a short sale.
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Related Terms
perfect hedge, neutral hedge, cross-hedging, convertible hedge, long hedge, commercial hedger, delta, disclaimer, inflation hedge, macro-hedge, micro-hedge, naked position, adequacy of coverage, conservative, downside protection
'hedge
' appears in the definitions of these terms on BusinessDictionary.comcredit derivative (CD), double hedging, foreign exchange contract, foreign exchange option, forward freight agreement, and 
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