hedging

Cultural  

1. The practice by which a business or investor limits risk by taking positions that tend to offset each other. For example, a business stands to lose money if the price of a commodity it holds declines, but it can offset this risk by agreeing to sell a specified amount of the commodity at a set price at some point in the future.

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Hedge funds, which are investment funds usually open only to the very wealthy, grew in the 1990s. The near failure of one such fund in 1998, Long-Term Capital Management, sent shock waves through Wall Street.

Example Sentences

You could feel me hedging more than a little there, right?

From Salon • Jun. 11, 2026

While elevated jet-fuel prices could weigh more on Chinese airlines due to limited fuel hedging, the share selloff has largely priced in much of the near-term pessimism, with valuations appearing more reasonable, he adds.

From The Wall Street Journal • Jun. 11, 2026

To secure the extraordinary unrealized profits that define so many portfolios, investors could consider our preferred hedging strategy: ratio spreads.

From Barron's • Jun. 3, 2026

That will provide a revenue boost to SpaceX’s money-losing AI business, but also sends an interesting signal—that the famously risk-tolerant Musk feels frontier AI is a bet worth hedging on.

From The Wall Street Journal • May 27, 2026

There are no trees to give shelter overhead, only the forest hedging the camp.

From "What the Night Sings" by Vesper Stamper

Related Words

• prevarication