Hedge: Difference between revisions

Hedge (view source)

25 bytes added , 8 February 2019

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 . (''n'') A bush to fling your apple core over when promenading in the countryside.
-. (''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]].
+. (''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]].
 {{Seealso}}