Hedging

Author:

Published:

Updated:

« Back to Glossary Index

Definition of “Hedging” :

“Hedging” is a financial strategy used to reduce the risk of adverse price movements in an asset. It involves taking an offsetting position in a related security, such as a futures contract. In South Africa, businesses and investors commonly use hedging to protect themselves against fluctuations in currency, commodity prices, or interest rates.

« Back to Glossary Index

Latest guides