Hedging transaction

{
  "id": "MLC-T-INS-001722",
  "term": "Hedging transaction",
  "field": "Insurance and risk management",
  "definition": "A financial maneuver undertaken to reduce the risk of adverse price fluctuations in an asset, liability, or anticipated future transaction. This involves taking an offsetting position in a related financial instrument to protect against potential losses. For example, a company might use currency futures to hedge against exchange rate risk on an international sale.",
  "url": "https://mlchart.com/terminology/insurance/hedging-transaction/"
}