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In the financial industry, hedging minimizes the risk of unfavorable price changes by acquiring an opposite position in a related security. Hedging is handy in trading since it can help to reduce risk by providing protection against market volatility, unforeseen economic shocks, and other potential losses.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.