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Business Terms and Jargon Explained

What is Hedging

Collective term for a range of techniques used to protect against risk, such as foreign exchange fluctuations. Usually involves buying one security and selling another. A perfect hedge produces a risk-free portfolio.

© Crown Copyright. Material taken from HM-Treasury. Reproduced under the terms and conditions of the Click-Use Licence.

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Term created / updated 2007-03-29 15:46:03

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