// TRADING TERMINOLOGY
What is Hedging Strategy?
A method of reducing risk by taking offsetting positions in related assets.
In-Depth Explanation
Hedging is not about making money; it is about protecting the money you have from adverse market moves.
Practical Example
"An investor hedges their US stock portfolio by buying "Put" options on the S&P 500."
Related Terms
Master the language of risk
Knowing the terms is just the start. Learning how to apply them is where the edge is found.
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