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Hedging: meaning, definitions and examples

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hedging

 

[ ˈhɛdʒɪŋ ]

Noun / Verb
Context #1 | Noun

financial

The act of protecting oneself from the risk of an uncertain future, typically through the use of financial instruments such as options or futures contracts.

Synonyms

insurance, protection, risk management

Examples of usage

  • Hedging against currency fluctuations is common practice for multinational corporations.
  • Investors use hedging strategies to minimize potential losses in volatile markets.
Context #2 | Verb

general

To avoid giving a direct answer or commitment, often by using vague or ambiguous language.

Synonyms

beat around the bush, equivocate, prevaricate

Examples of usage

  • The politician was accused of hedging when asked about his stance on the controversial issue.
  • She was known for hedging her promises to avoid breaking them.

Translations

Translations of the word "hedging" in other languages:

🇵🇹 cobertura

🇮🇳 हेजिंग

🇩🇪 Absicherung

🇮🇩 perlindungan

🇺🇦 хеджування

🇵🇱 zabezpieczenie

🇯🇵 ヘッジング

🇫🇷 couverture

🇪🇸 cobertura

🇹🇷 hedge

🇰🇷 헤징

🇸🇦 تحوط

🇨🇿 zajištění

🇸🇰 zabezpečenie

🇨🇳 对冲

🇸🇮 zavarovanje

🇮🇸 trygging

🇰🇿 хеджирлеу

🇬🇪 ჰეჯირება

🇦🇿 hecinq

🇲🇽 cobertura

Etymology

The term 'hedging' originated from the Old English word 'hegg', which referred to a fence or boundary. Over time, it evolved to describe the practice of creating a protective barrier against risks or uncertainties. In the financial context, hedging became popular in the 19th century with the rise of futures and options trading. The verb form of 'hedging' emerged later to describe the act of avoiding a direct commitment or answer. Today, hedging is widely used in both financial and general contexts to manage risks and navigate uncertain situations.

See also: hedgehog, hedgerow, hedges.

Word Frequency Rank

With rank #17,201, this word belongs to specialized vocabulary. While not common in everyday speech, it enriches your ability to express complex ideas.