Hedging is a strategy used to protect your portfolio from downside risk. It's like having insurance for your investments. By using hedging techniques, you can reduce potential losses. Think of it as a way to balance out your investments, so if one asset goes down, another asset can help offset the loss. This can be especially useful in times of market volatility. Hedging can be used in various forms, such as diversifying your portfolio or using financial instruments to reduce risk. The goal is to minimize losses and protect your investments. #TradFi #Investing #RiskManagement