Hedge Meaning: Definition, Examples, and Translations

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hedge

[hɛdʒ ]

Definitions

^{Context #1 | Noun}

financial

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple terms, a hedge is used to reduce any substantial losses or gains suffered by an individual or an organization.

Synonyms

insurance, protection, safeguard.

Which Synonym Should You Choose?

Word	Description / Examples
hedge	Can also mean to avoid giving a direct answer or committing to a decision. The politician hedged when asked about his stance on the controversial issue She hedged her response, not wanting to offend anyone
insurance	Refers to a system of protection against financial loss or harm, typically in the context of health, life, property, or travel. He bought health insurance to cover potential hospital bills Travel insurance is crucial to protect against unforeseen trip cancellations
protection	Used in general contexts to denote safety measures against harm, injury, or danger. The helmet provides protection against head injuries She installed antivirus software for protection against malware
safeguard	Refers to measures or actions taken to protect someone or something, often used in formal or serious contexts. The new law serves as a safeguard against unethical business practices They created a backup plan as a safeguard in case the primary plan fails

Examples of usage

Hedge funds are known for their sophisticated strategies in the financial markets.
Many companies use currency hedges to protect themselves against exchange rate fluctuations.

^{Context #2 | Noun}

gardening

A hedge is a fence or boundary formed by closely growing bushes or shrubs. It is often used to mark the boundary of a garden or property.

Synonyms

barrier, boundary, fence.

Which Synonym Should You Choose?

Word	Description / Examples
hedge	Often used in gardening or landscaping to describe a row of bushes or small trees planted close together, generally to form a boundary or screen. It can also mean a means of protection or defense, often used metaphorically in financial contexts. They planted a hedge around their garden to keep the deer out. The investor used options as a hedge against stock market volatility.
boundary	Refers to the dividing line or limit of an area, often used to define geographical or personal limits. It can be used in a more abstract sense to describe boundaries in relationships or personal limits. The fence marks the boundary between the two properties. Setting personal boundaries at work is important for maintaining a healthy work-life balance.
fence	Typically refers to a structure serving as an enclosure, barrier, or boundary, usually made of wood, metal, or wire. It is often used to keep animals in or out, or to provide privacy. They built a wooden fence around their backyard for more privacy. The farmer installed a new fence to keep the cattle from wandering off.
barrier	Used to describe a physical or metaphorical obstruction that prevents movement or access. It can be something that blocks progress or achievement. A barrier was put up to keep people from entering the construction site. Language differences can be a significant barrier to communication.

Examples of usage

The house was surrounded by a tall hedge that provided privacy.
She trimmed the hedge to keep it neat and tidy.

^{Context #3 | Verb}

general

To hedge means to protect oneself against a possible loss by counterbalancing it with a corresponding gain. It can also refer to avoiding making a direct statement or commitment.

Synonyms

evade, protect, safeguard.

Which Synonym Should You Choose?

Word	Description / Examples
hedge	Typically used in financial contexts to describe a strategy that reduces risk of adverse price movements in an asset. It can also refer to creating a boundary or limit by using plants. Investors hedge by purchasing options or other financial instruments. They decided to hedge their garden with a row of bushes.
protect	Generally used to describe actions taken to keep someone or something safe from harm or injury. It has a neutral to positive connotation. Parents often protect their children from danger. We need to protect our environment from pollution.
safeguard	Frequently used in a formal or official context to describe measures taken to protect or secure someone or something. It can imply a structured or preventive approach. The company implemented new policies to safeguard customer data. They installed a fence to safeguard their property from intruders.
evade	Often used in situations where someone is avoiding something deliberately, usually in a dishonest or sneaky manner. It can have a negative connotation. He tried to evade the police by hiding in an alley. She evaded the question by changing the topic.

Examples of usage

He decided to hedge his investments by diversifying his portfolio.
She hedged her answer, not wanting to reveal her true feelings.

Translations

To see the translation, please select a language from the options available.

Origin of 'hedge'

The word 'hedge' has its origins in Old English, where it was used to refer to a fence or boundary made of a row of shrubs or bushes. Over time, the term expanded to include financial contexts, where 'hedging' became a strategy to minimize risk. The concept of hedging has evolved to become a common practice in both financial and general contexts.

Word Frequency Rank

Position #8,646 indicates this is an advanced-level word. While not essential for basic communication, it will enhance your ability to understand and create more nuanced content.

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8643 visibility
8644 eleventh
8645 subset
8646 hedge
8647 utterance
8648 corrective
8649 symmetric
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