Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Hedge'
A strategy that is used in securities trading and portfolio management to reduce the risk of large losses by investing in securities that move in the opposite direction of other holdings. For example, a portfolio may have holdings that are sensitive and insensitive to interest rate movement.