Hedge
/ˈhɛdʒ/
Definitions
- (n.) An investment made to reduce the risk of adverse price movements in an asset.
The investor purchased options as a hedge against stock market volatility.
- (v.) To limit or qualify a statement or position to reduce risk or exposure.
She hedged her remarks to avoid making a definitive claim.
Forms
- hedging
- hedg
- hedges
- hedged
Related terms
See also
Commentary
In legal and financial contexts, hedging often involves strategies explicitly designed to offset potential losses; clarity in defining the scope of hedging arrangements is essential.
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.