Difference between revisions of "Hedging"

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(Created page with "The use of two different strategies in order to reduce the risk involved with one strategy. For example, you could hedge by taking a long position and shorting it simultaneously; this would result in your exposure being less than if you just went long or short on that particular asset/trade alone. == Sources: == https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary Category:Glossary")
 
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Latest revision as of 13:16, 26 April 2022

The use of two different strategies in order to reduce the risk involved with one strategy. For example, you could hedge by taking a long position and shorting it simultaneously; this would result in your exposure being less than if you just went long or short on that particular asset/trade alone.

Sources:

https://fintechmagazine.com/financial-services-finserv/140-blockchain-and-crypto-words-ultimate-z-glossary