Hedging is a strategy to get portfolio protection. A risk management strategy employed to offset losses in investments by taking an opposite position in a related asset, it protects an investment from risky situations that might lead to financial losses. As it does not guarantee complete assets protection, Hedging makes sure that losses will be mitigated by gains in another investment. The reduction in risk provided by hedging also typically results in a reduction in potential profits. Hedging strategies typically involve derivatives, such as options and futures contracts.
Discusses The Following
Asset Classes
Future
|
|
Option
|
Strategies
Asset Protection
|
|
Diversification
|
Terms
Arbitrage
|
|
Derivative
|
|
Risk Analysis
|
Asset Classes
Silver
|
Entities
People
Publications
Terms
Derivative
|
|
Risk Management
|
Equity Hedging Strategy Using Beta
The information contained herein is obtained from sources believed to be reliable, but its accuracy cannot be guaranteed. It is not designed to meet your personal financial situation - we are not investment advisors nor do we give personalized investment advice. The opinions expressed herein are those of the publisher and are subject to change without notice. It may become outdated an there is no obligation to update any such information.