Hedge

{
  "id": "MLC-T-INS-001720",
  "term": "Hedge",
  "field": "Insurance and risk management",
  "definition": "A financial strategy employed to offset potential losses or gains that may be incurred by a companion investment. It involves taking an opposite position in a related asset or derivative to reduce exposure to market fluctuations. Common hedging instruments include futures contracts, options, and forward contracts, which are used to mitigate risks such as currency exchange rate volatility or commodity price changes.",
  "url": "https://mlchart.com/terminology/insurance/hedge/"
}