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Investing Glossary:
Hedging
Copyright 2010,
Campbell R. Harvey. All Rights Reserved.
Do not reproduce without explicit permission.
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| Term: |
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| Definition: |
| A Strategy designed to reduce Investment risk using Call options, put options, short-selling, or futures contracts. A Hedge can help Lock in profits. Its purpose is to reduce the volatility of a Portfolio by reducing the Risk of loss.
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