English · Work & Business
hedge
/hɛdʒ/
[/hɛdʒ/]
reduce financial risk
Advancedverb
Definition
To protect oneself against loss by making balancing or counteracting investments.
Example
The airline hedged against rising fuel prices by buying contracts in advance.
The airline hedged against rising fuel prices by buying contracts in advance.
Etymology
From the protective hedge of a field; the financial sense is established.
How & Where It’s Used
Used in finance and risk management.