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hedging

- 4 dictionary results

hedge

[hej] noun, verb, hedged, hedg⋅ing.
–noun
1. a row of bushes or small trees planted close together, esp. when forming a fence or boundary; hedgerow: small fields separated by hedges.
2. any barrier or boundary: a hedge of stones.
3. an act or means of preventing complete loss of a bet, an argument, an investment, or the like, with a partially counterbalancing or qualifying one.
–verb (used with object)
4. to enclose with or separate by a hedge: to hedge a garden.
5. to surround and confine as if with a hedge; restrict (often fol. by in, about, etc.): He felt hedged in by the rules of language.
6. to protect with qualifications that allow for unstated contingencies or for withdrawal from commitment: He hedged his program against attack and then presented it to the board.
7. to mitigate a possible loss by counterbalancing (one's bets, investments, etc.).
8. to prevent or hinder free movement; obstruct: to be hedged by poverty.
–verb (used without object)
9. to avoid a rigid commitment by qualifying or modifying a position so as to permit withdrawal: He felt that he was speaking too boldly and began to hedge before they could contradict him.
10. to prevent complete loss of a bet by betting an additional amount or amounts against the original bet.
11. Finance. to enter transactions that will protect against loss through a compensatory price movement.

Origin:
bef. 900; ME, OE hegge; c. D heg, G Hecke hedge, ON heggr bird cherry


hedgeless, adjective


9. evade, stall, delay, temporize, waffle.
hedge   (hěj)   
n.  
  1. A row of closely planted shrubs or low-growing trees forming a fence or boundary.
  2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk.
    1. A means of protection or defense, especially against financial loss: a hedge against inflation.
    2. A securities transaction that reduces the risk on an existing investment position.
  3. An intentionally noncommittal or ambiguous statement.
  4. A word or phrase, such as possibly or I think, that mitigates or weakens the certainty of a statement.
v.   hedged, hedg·ing, hedg·es

v.   tr.
  1. To enclose or bound with or as if with hedges.
  2. To hem in, hinder, or restrict with or as if with a hedge.
  3. To minimize or protect against the loss of by counterbalancing one transaction, such as a bet, against another.
v.   intr.
  1. To plant or cultivate hedges.
  2. To take compensatory measures so as to counterbalance possible loss.
  3. To avoid making a clear, direct response or statement.

[Middle English, from Old English hecg.]
hedg'er n., hedg'y adj.

hedging

The practice by which a business or investor limits risk by taking positions that tend to offset each other. For example, a business stands to lose money if the price of a commodity it holds declines, but it can offset this risk by agreeing to sell a specified amount of the commodity at a set price at some point in the future.

Note: Hedge funds, which are investment funds usually open only to the very wealthy, grew in the 1990s. The near failure of one such fund in 1998, Long-Term Capital Management, sent shock waves through Wall Street.

Main Entry: hedg·ing
Function: noun
: the practice of engaging in offsetting financial transactions to reduce losses
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