Join our Stock Market News Group at GetPaidIndia on Telegram and WhatsApp.

This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.

Hedging



From GetPaidIndia.com
Jump to:navigation, search

Simply said, Heding is the process of reducing the risk with one investment by making an investment in another that will be opposite / investly / unrelated to the original investment.

For example, making investment in gold and equity shares ... because invest in equity shares have less correlation to gold prices.

This way the returns from ur overall investment will be minimized because when equity share prices go down, you will still have gold prices that might go up. F&O is a good example of heding if u understand it.

Related Lessons