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1. (''n'') A bush to fling your apple core over when promenading in the countryside. | {{def|Hedge|/hɛdʒ/|n|}}1. (''n'') A bush to fling your apple core over when promenading in the countryside. <br> | ||
2. (''n''; ''v'') ''Finance'': to manage a [[market risk]] or [[credit risk]] by 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]]. | 2. (''n''; ''v'') ''Finance'': to manage a [[market risk]] or [[credit risk]] by 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]]. | ||
{{capsule delta-hedging}} | |||
{{ | {{sa}} | ||
*{{eqderivprov|Hedging Disruption}} ({{eqderiv}}) | *{{eqderivprov|Hedging Disruption}} ({{eqderiv}}) | ||
*{{eqderivprov|Hedge Positions}} ({{eqderiv}}) | *{{eqderivprov|Hedge Positions}} ({{eqderiv}}) | ||
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*[[Delta]] | *[[Delta]] | ||
*[[Delta-one]] | *[[Delta-one]] | ||
{{Ref}} |