- The definition of a hedge is a boundary or fence formed by closely planted bushes or trees.
An example of hedge is a line of bushes planted close together creating a border.
- Hedge is defined as something you do to minimize loss.
An example of hedge is to buy the stocks of two competing companies so that you will receive an increase in the value of one stock even if the other stock declines in value.
Hedges against a white fence.
- a row of closely planted shrubs, bushes, or trees forming a boundary or fence
- anything serving as a fence or barrier; restriction or defense
- the act or an instance of hedging
Origin of hedgeMiddle English hegge ; from Old English hecg, akin to German hecke ; from Indo-European base an unverified form kagh-, wickerwork, wickerwork pen from source Old Norse heggr, Classical Latin caulae, sheepfold: basic sense “woven fence, enclosure”
- of, in, or near a hedge
- low, disreputable, irregular, etc.
transitive verbhedged, hedging
- to place a hedge around or along; border or bound with a hedge
- to hinder or guard as by surrounding with a barrier: often with in
- to try to avoid or lessen loss in connection with (a bet, risk, etc.) by making counterbalancing bets, investments, etc.
- to hide or protect oneself, as if behind a hedge
- to hide behind words; refuse to commit oneself or give a direct answer
- to try to avoid or lessen loss by making counterbalancing bets, investments, etc.
- A row of closely planted shrubs or low-growing trees forming a fence or boundary.
- A line of people or objects forming a barrier: a hedge of spectators along the sidewalk.
- a. A means of protection or defense, especially against financial loss: a hedge against inflation.b. A securities transaction that reduces the risk on an existing investment position.
- An intentionally noncommittal or ambiguous statement.
- A word or phrase, such as possibly or I think, that mitigates or weakens the certainty of a statement.
verbhedged hedged, hedg·ing, hedg·es
- To enclose or bound with or as if with hedges.
- To hem in, hinder, or restrict with or as if with a hedge.
- To minimize or protect against the loss of by counterbalancing one transaction, such as a bet, against another.
- To plant or cultivate hedges.
- To take compensatory measures so as to counterbalance possible loss.
- To avoid making a clear, direct response or statement.
Origin of hedgeMiddle English, from Old English hecg.
- A thicket of bushes, usually thorn bushes; especially, such a thicket planted as a fence between any two portions of land; and also any sort of shrubbery, as evergreens, planted in a line or as a fence; particularly, such a thicket planted round a field to fence it, or in rows to separate the parts of a garden.
- He trims the hedge once a week.
- (UK, chiefly Devon and Cornish) A mound of earth, stone- or turf-faced, often topped with bushes, used as a fence between any two portions of land.
- A non-committal or intentionally ambiguous statement.
- (finance) Contract or arrangement reducing one's exposure to risk (for example the risk of price movements or interest rate movements).
- The asset class acts as a hedge.
- (UK, Ireland, noun adjunct) Used attributively, with figurative indication of a person's upbringing, or professional activities, taking place by the side of the road; third-rate.
(third-person singular simple present hedges, present participle hedging, simple past and past participle hedged)
- To enclose with a hedge or hedges.
- to hedge a field or garden
- To obstruct with a hedge or hedges.
- (finance) To offset the risk associated with.
- (intransitive) To avoid verbal commitment.
- He carefully hedged his statements with weasel words.
- (intransitive) To construct or repair a hedge.
- (intransitive, finance) To reduce one's exposure to risk.
hedge - Investment & Finance Definition
A position created when a financial contract is purchased in the futures or options market. The purpose of the hedge is designed to protect against price changes in the actual commodity or financial instrument. By selling a futures contract, a producer or trader can protect against potential price declines. Buying a futures contract protects against rising costs. In essence, a hedge works somewhat like insurance.