Financial Glossary

Book store

My basket

Join Now - It's FREE!


		Financial Glossary


		Glossary




		Show Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z


	Found:	4 Items
	Now Showing:	1 to 4
	H

Hedge

A transaction that reduces the risk of an investment.

Hedge Efficiency

The success of a hedging transaction in reducing risk exposure.

Hedge Fund

An investment company that uses a variety of techniques to enhance return. The fund will use a variety of leveraging techniques, sell short/long and so on to enhance return, but at a much higher risk.

Hedging

Reducing risk by offsetting investments with investments of opposite risk. Risks must be negatively correlated in order to hedge each other; for example, an investment with high inflation risk and low immediate returns with investments with low inflation risk and high immediate returns. Long hedges protect against a short-term position and short hedges protect against a long-term position. Hedging is not the same as diversification, as it aims to protect against risk by counterbalancing a specific area of risk in the portfolio.

Privacy

Sitemap

About us


	Disclaimer:
	The information on this site is for informational purposes only. globalinvestor.com its affiliates and content licensors assume no liability for any inaccurate, delayed or incomplete information, nor for any actions taken in reliance thereon. The information contained about each individual and firm has been supplied by such individual or firm without verification by us. Past performance is not necessarily indicative of future performance. Prior to making any investment decision, it is recommended that you consult directly with the individual or firm and seek advice from a qualified investment advisor.