Article What Is A Hedge?

T2W Bot

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Headging is often considered an advanced investing strategy, but the principles of hedging are fairly simple. With the popularity – and accompanying criticism – of hedge funds, the practice of hedging is becoming more widespread. Despite this, it is still not widely understood.
Everyday Hedges Most people have, whether they know it or not, engaged in hedging. For example, when you take out insurance to minimize the risk that an injury will erase your income, or you buy life insurance to support your family in the case of your death, this is a hedge.
You pay money in monthly sums for the coverage provided by an insurance company. Although the textbook definition of hedging is an investment taken out to limit the risk of another investment, insurance is an example of a real-world hedge.
Hedging by the Book Hedging, in the Wall Street sense of the word, is best illustrated by example.
Imagine that you want to invest in the budding industry of bungee...
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The Leopard

Experienced member
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An interesting question. Hedges come in many forms. Here is an example of a simple hedge:



There are of course much more complicated hedges:



It is even possible to use a double hedge:

 

NVP

Legendary member
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An interesting question. Hedges come in many forms. Here is an example of a simple hedge:

ok .....beaten to the punch again.................sigh :whistling
 

pboyles

Legendary member
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http://www.linkedin.com/pub/andrew-beattie/23/564/6b8

http://www.linkedin.com/pub/andrew-beattie/23/564/6b8
 

pboyles

Legendary member
8,072 1,301
Did you know that hedges used to separate a road from adjoining fields or one field from another, and of sufficient age to incorporate larger trees, are known as hedgerows? What an interesting article.

Alan Titchmarsh will be along in a minute to discuss herbatious borders.
 

The Leopard

Experienced member
1,877 1,020
Did you know that hedges used to separate a road from adjoining fields or one field from another, and of sufficient age to incorporate larger trees, are known as hedgerows? What an interesting article.

Alan Titchmarsh will be along in a minute to discuss herbatious borders.
That is interesting actually. I never knew that there was a legitimate distinction between hedge and hedgerow before. Learn something new and all that.
 

pboyles

Legendary member
8,072 1,301
That is interesting actually. I never knew that there was a legitimate distinction between hedge and hedgerow before. Learn something new and all that.
Did you also know that trimming a hedge helps to promote bushy growth? A word of caution though, if a hedge is trimmed repeatedly at the same height, a 'hard knuckle' will start to form at that height.

You wouldn't want that on your hedge.
 

rsh01

Experienced member
1,184 299
You should check out some German hedges.
perhaps why DT moved to the orient, more common place in the west.

Seriously though isnt the thread title merely a google search which can be answered in a sentence?