Hedging

HedgeHedging is a very useful investment strategy for the risk averse  investors.They can easily use this strategy to minimize their risk of their investments.It helps the investor to avoid very  adverse market price movements. Investors use different types of hedging strategies to hedge their investments such as  covered calls,short straddles,forward exchange,money market operations and future contracts etc.

 

 

Investors can easily create hedge through stock,swaps,over the counter,derivatives and futures contracts etc. This investment strategy is a very useful for the unstable markets.It keeps the investor safe from very unpredictable price movements in the markets.

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About Emaad Qureshi