hedgingnoun [ U ]
uk/ˈhedʒɪŋ/usFINANCE, STOCK MARKETthe activity of reducing the risk of losing money on shares, bonds, etc. that you own, for example, by buying futures (= agreements to sell shares for a particular price at a date in the future) or options (= the rights to buy or sell shares for a particular price within a particular time period):
Originally hedge funds took a more traditional approach to hedging: they bought shares they thought would rise in companies they expected to do well.
Hedging instruments such as futures contracts are priced in dollars.
a hedging policy/strategy/programme