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 Glossary:

Hedging

Hedging - to reduce market risk by taking a position opposite of what you already have.

For example say you have $1,000 in foreign currency, you can sell a futuresDefinition contract covering the $1,000 today and lock in its price until you need the money.

By hedging, you will be protected from any fluctuations in that currency.

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 Hedging - some related terms:
Futures

Call Option
Futures




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