hedging

Protecting against loss

Hedging is protecting against risk by taking offsetting positions.

In finance, you hedge a bet or investment by also betting the other way, limiting potential losses: The fund hedged its stock positions with put options.

More broadly, hedging means avoiding commitment or direct answers: She kept hedging when asked about her plans.

To hedge your bets is to avoid putting all your resources behind one outcome.

financial

derivatives

Things derived from another

futuresContracts for future delivery
optionsAvailable courses of action
swapsMutual trades

short-selling · puts · calls · forex · commodities · collar · straddle · spread · counterparty · exposure

evasion

equivocation

Ambiguous language avoiding commitment

noncommittalNot expressing clear opinion
vaguenessAbsence of precision
ambiguityOpenness to multiple interpretations

qualification · waffling · fence-sitting · deflection · sidestepping · dodging · elusiveness · circumlocution · prevarication · obfuscation

caution

prudence

Careful, wise judgment

safeguardingPreventing harm or loss
diversificationExpanding into varied areas
insuranceContractual risk coverage

buffer · contingency · backup · fallback · precaution · protection · conservatism · forethought · mitigation · cushion

horticultural

shrubs

Low woody plants

privetShrub for formal hedges
boxwoodDense-grained ornamental shrub
topiaryShaped shrub sculpture

trimming · shears · clipping · pruning · boundary · garden · yew · hawthorn · border · enclosure

hedging

derivatives

equivocation

prudence

shrubs

hedging

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