risk hedge
risk hedge definition - business
risk hedge
The taking of an offsetting position in related assets so as to profit from relative price movements. For example, an investor might purchase futures contracts on gold and sell short futures contracts on silver in the belief that gold will become relatively more valuable compared with silver over the life of the contracts.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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