Hedging is a way to protect your portfolio from downside risk. It involves taking a position that offsets potential losses. Think of it like insurance for your investments. You can use various strategies, such as options or futures contracts, to hedge your bets. The goal is to reduce potential losses, not to make a profit. By hedging, you can limit your exposure to market volatility and protect your capital. It's a key concept in risk management. #RiskManagement #Portfolio #TradingTips