TRADING GLOSSARY
Hedging
Hedging means opening a position intended to offset the risk of another position or exposure. It can reduce some risks but adds costs and does not remove risk completely.
EXAMPLE
A business expecting to receive euros in three months might sell EURUSD to offset the risk of the euro falling.
RELATED TERMS
Full glossary A–Z →Put the theory into practice.
Open an account in minutes, or practise on a free demo first.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure