what is the meaning of hedging?

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what is the meaning of hedging?..

Answer / t.mahesh reddy

hedging is a tool for reducing the risk for an investor by
using proper derivatives such as
options,futures,swaps,forwards.Hedging is to protect the
investor from the intrst rate fluctuations and also
exchange rate flutuations.

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what is the meaning of hedging?..

Answer / paa

It is a tool use to minimize the risk.

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what is the meaning of hedging?..

Answer / jagadish

hedging in short is reducing or bringing down the risk is
called hedging

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what is the meaning of hedging?..

Answer / smith

Hedging is the process of eliminating exposure to foreign
exchange risk so as to avoid potential losses from
fluctuations in exchange rates. In addition to avoiding
possible losses, companies hedge foreign currency
transactions and commitments so as to introduce an element
of certainty into the future cash flows resulting from
foreign currency activities. Hedging involves establishing
a price today at which foreign currency can be sold or
purchased at a future date.

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what is the meaning of hedging?..

Answer / pranai

Hedging is a concept. It is emerged with derivative market.
this concept is used for reduce or eliminate risk of the particular security. (underlying asset)

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what is the meaning of hedging?..

Answer / sri

Hedging is the mechanism of reduce risk.

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what is the meaning of hedging?..

Answer / sivareddyn

hedging approach we gather the working capital from the
long term sources when ever firm need more working capital
more than actual they procure from short term sources is
called hedging.

Is This Answer Correct ?    12 Yes 30 No

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