Wall Street

What Is a Hedge? How Does It Work?

Published by
The Street

By TheStreet Staff What Is a Hedge? Successful investing is often a balance between risk and reward. While many investors believe that the greater risks they take, the greater rewards they will receive; careless risk taking is certain to result in losses. One way investors can manage or even control the number of risks they are taking is through a hedge, or an offsetting position, such as aderivative security. How Does Hedging Work?Hedging works by minimizing potential losses in an asset you have already invested in by building an inverse position in case the asset moves in the opposite direct…

Read More

Share this Story
Load More Related Articles
Load More In Wall Street