noun

hedge

/hedʒ/ · say it: HEJ

an investment made to reduce the risk of adverse price movements

In Banking & Finance

In more detail

1. (noun) a row of bushes or small trees planted close together, usually as a boundary around a field or garden

2. (noun) a way of protecting yourself against loss, especially by making a financial investment that reduces risk

3. (verb) to plant a hedge or form a hedge around something

4. (verb) to avoid giving a clear answer or making a definite commitment

Examples

1. The old stone wall was replaced by a tall green hedge.
2. Buying insurance is a hedge against unexpected medical costs.
3. The farmer hedged the property with hawthorn bushes.

How to use hedge

As a noun for vegetation, hedge refers to a dense line of bushes forming a natural boundary; this is common in British English and rural contexts. As a noun in finance, it denotes an investment strategy to offset potential losses. As a verb, it means either to enclose with hedges or (more commonly in modern usage) to avoid committing to a position, often implying evasiveness or caution. The verb form is frequently used in phrases like 'hedge your bets' or 'stop hedging' (meaning stop being evasive).

Common phrases

hedge fund
hedge against inflation
hedge your bets
privet hedge
living hedge
hedge row

Synonyms

fence · barrier · windbreak · protection · safeguard

Opposites

expose · risk · commit

Word family

hedging · hedged · hedger

A common mistake

Learners sometimes confuse 'hedge' (to avoid commitment) with 'hedge in' (to surround or confine); these are related but distinct uses. Also, 'hedging' a financial position is sometimes misunderstood as purely protective when it can involve various risk-management strategies.

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