Hedging

/ˈhɛdʒɪŋ/

Meaning & Definition

noun

A strategy used to reduce the risk of loss by making an investment in one asset to offset the risk of loss in another.

The investor engaged in hedging by purchasing options to protect against potential losses in the stock market.

Any statement or action intended to limit the scope of a statement or to avoid making a definitive commitment.

His hedging in the negotiation showed that he was not fully committed to the deal.

verb

To lessen or mitigate risk, particularly in finance.

The company is hedging its bets by diversifying its investments across different sectors.

To avoid giving a direct answer or to be deliberately vague.

Instead of answering the question directly, she was hedging her response to avoid potential backlash.

Derived from the word 'hedge', referring to enclosing or protecting.

hedge against

To protect oneself from potential losses.

hedging one's bets

To reduce the risk of losing by making alternative choices.

hedged position

An investment stance that protects against loss.

hedge

To mitigate risks or avoid losses.

risk

The possibility of suffering harm or loss.

Playing it safe

He's hedging by not committing to any plans.

Being non-committal

Stop hedging and give me a straight answer.