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What is meant by the term "Hedging" ?

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Question added by Deleted user
Date Posted: 2014/08/14
Anayatullah Tahir
by Anayatullah Tahir , Finance Manager , Etqan Projects

Basically as Payal Seth has mentioned hedging mean to reduce risk with use of certain course of actions, these actions are taken in response to a future happening, more likely to result in a loss of value.

 

Hedging procedures are followed in:

1- Foreign exchange transactions.

2- Purchasing Put Options

3- Purchasing Call Options etc

Payal Seth
by Payal Seth , Financial Analysis and Tax Processor , SKP e-solutions Pvt Ltd

Hedging means to reduce risk.

Khaled Abdelrehim ACCA DipIFR CMA
by Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

A financial instrument used to mitigate risk.

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