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Hedging is a general concept also which is made popular by the term "Hedging your bets". This is often done by betting on 2 opposing situations thereby turning a profit regardless of the outcome.

In finance a "hedge" is often accomplished by both shorting a stock and buying options to hedge yourself in the chance that the stock goes up.

A hedge fund is an unregulated investment fund that are popular amongst high-net worth and institutional investors. Hedge funds are different from mutual funds because they are not regulated, the hedge fund manager has the ability to buy and sell all types of assets, betting on rise and falls of securities.

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Keith Rohan

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4y ago

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What is a naive hedge?

Naive hedging is where taking a hedge position without taking into consideration the level of hedging required. The optimal hedging position should be such that the expected position from the hedge perfectly offset the underlying risk. Naive hedging (over hedging) could potentially lead to a substantial gain or loss position from hedging.


What is a naive?

Naive hedging is where taking a hedge position without taking into consideration the level of hedging required. The optimal hedging position should be such that the expected position from the hedge perfectly offset the underlying risk. Naive hedging (over hedging) could potentially lead to a substantial gain or loss position from hedging.


What is the difference between hedging and hedge fund?

Hedging is a general concept also which is made popular by the term "Hedging your bets". This is often done by betting on 2 opposing situations thereby turning a profit regardless of the outcome. In finance a "hedge" is often accomplished by both shorting a stock and buying options to hedge yourself in the chance that the stock goes up. A hedge fund is an unregulated investment fund that are popular amongst high-net worth and institutional investors. Hedge funds are different from mutual funds because they are not regulated, the hedge fund manager has the ability to buy and sell all types of assets, betting on rise and falls of securities.


Why are hedge funds called hedge funds?

The term "hedge fund" originates from the practice of "hedging" or minimizing risk. However, over time, hedge funds have evolved far beyond mere hedging strategies. Today, many hedge funds engage in aggressive speculative activities that hardly resemble traditional hedging. Thus, the term is misleading and fails to accurately reflect the diverse and often risky investment practices of modern hedge funds. It's essential to acknowledge this evolution and not romanticize the industry by clinging to outdated terminology.


Concept of hedging?

The concept of hedging is to reduce the risk of financial loss. Hedging originated out of the 19th century commodity markets. A hedge can include stocks, exchange-traded funds, insurance, forward contracts, swaps, and options.


What is foreign exchange hedging?

hedging is a way to get yourself protected against a big loss. You can even make an analogy of a hedge as having insurance for your trade. With forex hedging, you employ a method of decreasing the amount of loss that you are likely to experience if something bad comes up.


Where the name Hedge Fund come from?

The name hedge fund comes from the investment strategy of hedging positions in equity securities. The first hedge fund was created to "hedge" long positions with matched short positions within securities that would reduce the perceived overall risk of the portfolio at hand.


Forward market hedge?

forward market hedging is the way of making profit by predicting contract in advance to buy and sell of goods in the future.


What is the definition of hedge fund?

A hedge fund is an investment group that uses advanced investment strategies in both domestic and international markets in the hope of generating a high return. The term "hedge fund" comes the practice of "hedging" or minimizing risk in way that does not affect the income generated.


If you trim a hedge lower than usual will it grow back fuller?

It depends what type of shrub forms the hedge. With the normal hedging like privet or cotoneaster you can cut it hard back to a foot from the ground and it will grow back much thicker.


Is private hedging poisonous to horses?

Yes Privet Hedge is toxic to horses and should be kept as far away from the horse as possible. If the horse ingest any of the hedge call an equine veterinarian immediately and keep a close eye on the horse.


Where can one learn to trim hedging?

A good Agricultural college would be one place that may provide courses on hedge trimming. Some large garden centres may also hold classes for hedge trimming and other aspects of gardening