Meaning & Definition of word "Hedging"
Hedging
/ˈhɛdʒɪŋ/
noun:
- 1. A strategy used to reduce the risk of loss by making an investment in one asset to offset the risk of loss in another.
- Example: The investor engaged in hedging by purchasing options to protect against potential losses in the stock market.
- 2. Any statement or action intended to limit the scope of a statement or to avoid making a definitive commitment.
- Example: His hedging in the negotiation showed that he was not fully committed to the deal.
verb:
- 1. To lessen or mitigate risk, particularly in finance.
- Example: The company is hedging its bets by diversifying its investments across different sectors.
- 2. To avoid giving a direct answer or to be deliberately vague.
- Example: Instead of answering the question directly, she was hedging her response to avoid potential backlash.
Etymology
●Derived from the word 'hedge', referring to enclosing or protecting.
Common Phrases and Expressions
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.
Related Words
hedge:
To mitigate risks or avoid losses.
risk:
The possibility of suffering harm or loss.
Slang Meanings of hedging
Meaning: Playing it safe
● Example Sentence: He's hedging by not committing to any plans.
Meaning: Being non-committal
● Example Sentence: Stop hedging and give me a straight answer.