Hedging

The idea

An offsetting exposure intended to reduce a specified risk; basis and costs remain.

Try the scenario

An exporter offsets part of a currency exposure, with residual mismatch.

Check your understanding

Which statement is supported by this definition?

• An offsetting exposure intended to reduce a specified risk; basis and costs remain.
• This concept guarantees the next five candles.
• Every hedge removes all risk for free.

Think through the example before checking your answer in the game. Verified player accounts can save lesson mastery and earn knowledge XP.