Hedge (Хедж / Хеджування) is a risk-reduction strategy aimed at mitigating potential losses from unfavorable price movements of assets.
In simple terms, it is a kind of “insurance” for a position. For example, if you own an asset, you can open an offsetting position (e.g., in the options or futures market) to minimize losses if the asset price goes down.
In simple terms, it is a kind of “insurance” for a position. For example, if you own an asset, you can open an offsetting position (e.g., in the options or futures market) to minimize losses if the asset price goes down.
