What Is Hedging in Trading? How It Protects You

What Is Hedging in Trading? How It Protects You

Hedging is taking a second position that offsets the risk of one you already hold. If you own a stock and buy a put on it, the put gains value when the stock falls — cushioning the loss. Hedging doesn’t eliminate risk; it trades some upside for protection against a move that would hurt. Think […]