SCN-7 “HEDGE”

SCN-7 “HEDGE”

Hello Readers, 

Welcome to the SCN Series. 

Today’s Term is: Hedge

A hedge is an investment that protects your finances from a risky situation.

It is done to reduce the risk of adverse price movements (rise or fall) in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a future contract. 

In simpler words, It is like making an alternate investment in 2nd security so as to reduce the adverse effect of price movements in 1st security. 

*A perfect hedge (100%) eliminates all risk in a portfolio.

Click here for the previous posts of this series.

For Tax Consultancy, Mail us at [email protected]

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *


Optimization WordPress Plugins & Solutions by W3 EDGE