currency hedging

Definition

A particular hedging strategy used to reduce risks in the foreign exchange market. The same strategies are used as in any hedging situation, where one security would be offset by another security, such as holding a short and long position of the same security at the same time.

Use currency hedging in a sentence

The currency hedging was going well and we all thought that everything would be good and everyone would be okay.

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The currency hedging that Clive was practicing in the French stock market was actually a very calculated strategy to deliver the best possible results to his clients.

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Fred saw opportunities for growth in the European stock markets, but was worried about the exchange rate so he used a currency hedging strategy to reduce the risk he didn't want to take.

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