Hedging techniques generally involve the use of financial instruments known as derivatives. Two of the most common derivatives are options and futures. With derivatives… See more

Every hedging strategy has a cost associated with it. So, before you decide to use hedging, … See more

The majority of investors will never trade a derivative contract. In fact, most buy-and-holdinvestors ignore short-term fluctuations altogether. For these investors, there is little point in eng… See more

A classic example of hedging involves a wheat farmer and the wheat futures market. A farmer plants their seeds in the spring and sells their harvest in the fall. In the intervening … See more

Risk is an essential, yet a precarious element of investing. Regardless of what kind of investor one aims to be, having a basic knowledge of hedging strategies will lead to bett… See more