hedge
Say it: HEJ /hɛdʒ/ · verb
What “hedge” means
Make a balancing choice to reduce possible losses.
More precisely: To protect yourself against loss by making a balancing investment or choice.
Example: “Airlines hedge against rising fuel prices by locking in contracts in advance.”
When to use it
In financial or business planning, when taking a second position that helps protect you if the first goes badly.
It can also mean
As a noun, a row of bushes forming a boundary.
Similar words
protect, insure, offset
Where it comes from
Originally a row of bushes forming a boundary or barrier.
Quick check
A farmer agrees a selling price before harvest to protect against prices falling later. What does she do?
speculate or hedge?
Show the answer
hedge
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