hedging


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Related to hedging: hedging bets, Currency Hedging

hedge

 (hĕj)
n.
1. A row of closely planted shrubs or low-growing trees forming a fence or boundary.
2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk.
3.
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.
4. An intentionally noncommittal or ambiguous statement.
5. A word or phrase, such as possibly or I think, that mitigates or weakens the certainty of a statement.
v. hedged, hedg·ing, hedg·es
v.tr.
1. To enclose or bound with or as if with hedges.
2. To hem in, hinder, or restrict with or as if with a hedge.
3. To minimize or protect against the loss of by counterbalancing one transaction, such as a bet, against another.
v.intr.
1. To plant or cultivate hedges.
2. To take compensatory measures so as to counterbalance possible loss.
3. To avoid making a clear, direct response or statement.

[Middle English, from Old English hecg.]

hedg′er n.
hedg′y adj.
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.hedging - any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change
security, protection - defense against financial failure; financial independence; "his pension gave him security in his old age"; "insurance provided protection against loss of wages due to illness"
2.hedging - an intentionally noncommittal or ambiguous statement; "when you say `maybe' you are just hedging"
equivocation, evasion - a statement that is not literally false but that cleverly avoids an unpleasant truth
Translations

hedging

[ˈhedʒɪŋ]
A. N
1. (Bot) → seto m vivo
2. (fig) (= evasions) → evasivas fpl
3. (Fin) → cobertura f
B. CPD hedging plant Nplanta f para seto vivo
References in periodicals archive ?
It's important to note that staying exposed can be just as wise as hedging.
The tax rules for hedging transactions have pitfalls; one of the biggest is the tax identification requirements.
In November 1994, Tax Executives Institute submitted comments to the Internal Revenue Service on proposed regulations that will permit affiliated groups of corporations filing consolidated returns either to aggregate their risk positions and hedge the net exposure within one or more hedging centers or to make a separate-entity election in respect of the group's hedging activities.
Although some activities involved with derivative instruments, for example, dynamic hedging of options portfolios, including the options embedded in fixed rate mortgages and mortgagbacked securities, may have tended to exaggerate price movements, other elements involving derivatives, such as the availability of highly liquid futures markets on organized exchanges, probably smoothed price developments in the cash market for bonds.
dollar (USD) since the summer of 2003, the gradual rise in short term interest rates and the painful rise of commodities prices, many treasurers are revisiting their hedging strategies and policies.
446-4(e)(4), gain or loss from a hedging transaction "must be accounted for by reference to the terms of the debt instrument and the period or periods to which the hedge relates.
Many trading and hedging models and programs imply steadily flowing market swings.
Richardson on the proposed regulations relating to hedging of property by a consolidated group.
The new standard is a wake-up call for companies to evaluate their hedging strategies.
1221-2(e), the taxpayer neglected to identify the agreements as hedging transactions for tax purposes in its books and records on the date of such agreements, and failed to identify specifically the proposed issuance of debt as the hedged item within 35 days of the date of the agreements.
On February 4, 1994, Tax Executives Institute submitted the following comments on the temporary and proposed regulations relating to business hedging.