Hedging is a technique used to reduce or fully mitigate a risk exposure. Hedging is a commonplace practice in business, finance, investment management, and even everyday life. In a financial setting, ...

Hedging has been around for quite some time. With time, businesses have largely become more sophisticated in using hedging as a strategy. Individual businesses can take different approaches to hedging ...

Hedging aims to reduce risk from market drops, interest rate hikes, or currency changes by taking offsetting positions. Speculation, by comparison, focuses on profit from price moves and catalysts but ...

James Chen, CMT is an expert trader, investment adviser, and global market strategist. Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in ...

The recent large moves in the US dollar have brought the idea of currency hedging to investor attention. Currency hedging is often ignored when discussing international equity investments but this ...

Basis risk refers to the potential mismatch between the value of an asset or liability and the financial instrument used to hedge or manage its risk. This divergence can result in unexpected gains or ...