- 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.
hedge definition by Webster's New World
- 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: Middle 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.
- 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.
- hedger noun
hedge definition by American Heritage Dictionary
- 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.
- 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: Middle English, from Old English hecg.
- hedgˈer noun
- hedgˈy adjective
hedge - Business Definition
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.