Hedging is a strategy to limit investment risks. Investors hedge an investment by trading in another that is likely to move in the opposite direction. A risk-reward tradeoff is inherent in... Hedge meaning in finance is the hedging against investment risk that entails utilizing financial instruments or market techniques to mitigate the risk of adverse price fluctuations. To put it another way, investors hedge one investment by trading in another. Learn the various meanings and uses of the word hedge, from a row of bushes or trees to a financial strategy or a cautious statement. See examples, synonyms, pronunciation, and related words. A hedge or hedgerow is a line of closely spaced (3 feet or closer) shrubs and sometimes trees, planted and trained to form a barrier or to mark the boundary of an area, such as between neighbouring properties.
