Hedge: Difference between revisions
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1. (''n'') A bush to fling your apple core over when promenading in the countryside. | |||
2. (''n''; ''v'') ''Finance'': to manage a [[risk]] buy trading [[financial instrument]]s that will tend to have the opposite effect. This can be by selling the exact thing you bought — this is called [[delta-one]] [[hedging]], or trading a portfolio of instruments whose performance, when combined, is negatively [[correlation|correlated]] to the [[risk]] you are trying to [[hedge]]. | |||
{{Seealso}} | {{Seealso}} | ||
Revision as of 16:14, 8 February 2019
1. (n) A bush to fling your apple core over when promenading in the countryside.
2. (n; v) Finance: to manage a risk buy trading financial instruments that will tend to have the opposite effect. This can be by selling the exact thing you bought — this is called delta-one hedging, or trading a portfolio of instruments whose performance, when combined, is negatively correlated to the risk you are trying to hedge.
See also
- Hedging Disruption (Equity Derivatives)
- Hedge Positions (Equity Derivatives)
- Hedging Party (Equity Derivatives)
- Delta
- Delta-one