Hedg
/ˈhɛdʒ/
Definitions
- (n.) A financial transaction entered into as a means of reducing risk of adverse price movements in an asset.
The company entered a currency hedge to protect against exchange rate fluctuations.
- (v.) To enter into a hedge position to reduce financial risk.
Investors often hedge their portfolios against market downturns.
Forms
- hedges
- hedged
- hedging
Related terms
See also
Commentary
In legal contexts, 'hedge' primarily concerns risk management strategies in contracts and securities; drafting should clearly identify the underlying asset and hedge's intended protective purpose.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.