Hedge

Fancy Way to Say: Offset, Protect No, we're not talking bushes or shrubs. Instead, the term hedge is generally used to mean offsetting a position. It can also refer to protecting a profit. For example, if one is long 100 shares of XYZ but is wary of potential disaster, she can 'hedge' her position by buying a put against IBM. This insurance is used in case her feeling is right and XYZ does go into a coma.

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