Over-hedging is a risk management strategy that creates a position larger than the original. Learn how it works and view a ...

Delta hedging is a risk management strategy used to reduce or neutralize the price movements of an underlying asset in options trading. By adjusting the positions in the underlying asset to match the ...

Derivatives trading offers tools for hedging and speculation in financial markets. Learn key differences and strategies for ...

Jen Hubley Luckwaldt has over 15 years of experience writing and editing personal finance content. Her passion is making information about finance and investing accessible to everyone. Prior to ...

The recent large moves in the US dollar have brought the idea of currency hedging to investor attention. Currency hedging is often ignored when discussing international equity investments but this ...

Consistent market volatility has become the new normal for traders. Everything from geopolitical conflicts to erratic policy decisions to unprecedented news cycles has markets swinging in ways that ...

Pre-hedging is controversial because it involves (1) the dealer is using the non-public information of a client’s impending order for the dealer’s own benefit, when (2) the dealer’s trade potentially ...