Hedge
To protect against possible loss by taking offsetting actions, especially to reduce financial risk.
verbHedge
To protect against possible loss by taking offsetting actions, especially to reduce financial risk.
verbImagine This
Picture a cautious investor who plants a literal hedge around a portfolio diagram on a desk. As markets swing, the hedge absorbs the impact of losses, keeping the overall position safer.
Sounds Like
/hΙdΚ/ (sounds like 'hedge')
Looks Like
Hedge, a dense row of shrubs used as a boundary; imagine a privacy hedge between two houses shared by neighbors.
Remember This
To hedge your bets means to reduce risk by taking offsetting positions or protections. The term comes from the idea of a garden hedge that fences in and protects whatβs inside.
Other Forms
Connect With
mitigate, protect, guard, offset, diversify, risk management, hedge fund
Note
Hedge implies reducing risk, not guaranteeing profits. In finance, hedging often uses derivatives or opposite positions; a hedge may still involve some risk or cost. The noun form hedge refers to the plant boundary itself.