The business of hedging

The business of hedging
 

We've all heard the phrase hedging your bets - but do you know what it actually means?
"Hedge" has been used as a verb meaning to "avoid commitment" since at least the 16th century; it's used in Shakespeare's Merry Wives of Windsor, for example.
It started being used in relation to financial transactions in the early 17th century.
Technically it is a way of managing a financial price risk. But let's take it back to basics.
What is a hedge? If you've ever packed an umbrella so you aren't caught out by the weather, you've adopted a hedge position. Chances are you have also... read more

 
14 October 2016 in Business, Views: 45
Source: BBC
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