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English definition of “hedge”

hedge

verb [I or T]     /hedʒ/
FINANCE, STOCK MARKET to reduce the risk of losing money on shares , bonds , etc. that you own, for example by buying futures (= agreements to sell shares for a particular price at a date in the future ) or options (= the rights to buy or sell shares for a particular price within a particular time period ): European airports have been attracting investors keen to hedge long-term pension liabilities. We don't tend to hedge at all - in either stock or bond funds .hedge against sth Companies can hedge against currency movements , but many choose not to.hedge risk/exposure Airbus has hedged enough of its dollar exposure that a major short-term impact is unlikely .
hedge your bets to reduce the risk of failure or of losing money by making sure that you can choose between different possibilities : Some business leaders hedged their bets by donating money to both parties . Futures contracts allow companies in the nuclear sector to hedge their bets against price rises this year , next year or 10 years from now.
(Definition of hedge verb from the Cambridge Business English Dictionary © Cambridge University Press)
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