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What is Hedge?

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헤지

Offsetting an existing risk with a position in the opposite direction to reduce fluctuation. The purpose is not to increase profit but to reduce the spread of outcomes. A hedge therefore softens the worst case at the price of also trimming the best case. It should be understood as a choice to pay a cost in exchange for lower volatility.

Hedgethe side heldthe side placed against itwhen one side is pushed, the other supports

Lessons using this term (with diagrams)

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Hedge meaning — Trading glossary | MarketSurfer