// 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."

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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