Law Dictionary

To search for a particular term please use the following search box.

Letters

You may also browse our dictionary by first letter.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Return to Law Dictionary Index

hedging

the purchase or sale of a commodity, security or other financial instrument for the purpose of offsetting the profit or loss of another security or investment. Thus, any loss on the original investment will be hedged, or offset, by a corresponding profit from the hedging instrument.

Source : U.S. Department of the Treasury

Language : English

Return

Return to Law Dictionary Index