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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Hedge/Hedging  

Definition 1.

A method, often sophisticated, employed to minimize investment risk. Holders of a given stock might reduce risk on a relatively basic level, for instance, by buying a put option or selling a call option on that same stock; if the stock goes down, the option will rise in value, providing a ""hedge"" against losses.
 
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