What is the meaning of hedging?

Subtopics: maturity matching 

noun

  • Any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change.
  • An intentionally noncommittal or ambiguous statement.
    • usage: "when you say `maybe' you are just hedging"

verb

  • Avoid or try to avoid fulfilling, answering, or performing (duties, questions, or issues. )
    • usage: "He dodged the issue"; "she skirted the problem"; "They tend to evade their responsibilities"; "he evaded the questions skillfully"
  • Hinder or restrict with or as if with a hedge.
    • usage: "The animals were hedged in"
  • Enclose or bound in with or as it with a hedge or hedges.
    • usage: "hedge the property"
  • Minimize loss or risk.
    • usage: "diversify your financial portfolio to hedge price risks"; "hedge your bets"
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APAWordNet. (2010). hedging. Retrieved September 21, 2026, from http://smartdefine.org/hedging/definitions/1284489
ChicagoWordNet. 2010. "hedging" http://smartdefine.org/hedging/definitions/1284489 (accessed September 21, 2026).
HarvardWordNet 2010, hedging, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/hedging/definitions/1284489>.
MLAWordNet. "hedging" 23 October 2010. Web. 21 September 2026. <http://smartdefine.org/hedging/definitions/1284489>
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