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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.

Nearby in Banking & Finance

collateral, liquidity, arbitrage, derivative, equity, dividend