Hedge | Definition and How Does a Hedge Work
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financestrategists.com
Hedge | Definition and How Does a Hedge Work
In finance, hedges are investments made to counter the effect of possible losses. The strategy of using hedges to offset risk is known as “hedging.” If someone buys a volatile stock that may either skyrocket in price or may lose most of its value, they can “hedge” against potential losses by investing in a safer “blue chip” or ...
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