Meaning of hedge
This query is : Resolved
27 July 2011
Dear All,
Can anyone explain me the meaning of Hedge in the simple language followed by a simple example.
Also please do let me know who can do the hedging & what exact benefit will the person will get?
Please reply me quick
Thanks your your help
Can anyone explain me the meaning of Hedge in the simple language followed by a simple example.
Also please do let me know who can do the hedging & what exact benefit will the person will get?
Please reply me quick
Thanks your your help
CA Amit Joshi
(Expert)
27 July 2011
Hedging means minimizing the risk. If there is probability of loss and when we protect our self from the risk than it is called hedging.
for ex we are wearing helmet to protect our self from the risk of damage which can be happened from a accident, that is hedging.
Normally this word is used in share market to protect our self from the increase and decrease in the market.
for ex we are wearing helmet to protect our self from the risk of damage which can be happened from a accident, that is hedging.
Normally this word is used in share market to protect our self from the increase and decrease in the market.
27 July 2011
Thanks amit for your valuable feedback. would appreciate if you can more elaborate your statement in the term of understanding more on hedging term. Also would like to know what is Hedge funds
Thanks
Rakesh
Thanks
Rakesh
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