HEDGER Meaning and
Definition
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A hedger is an individual or entity engaged in the practice of hedging, a financial strategy aimed at reducing or mitigating risks associated with investments or transactions. The term primarily refers to someone who enters into hedging transactions, typically involving the buying or selling of financial derivatives, such as futures contracts, options, or swaps.
A hedger's objective is to protect themselves from potential adverse price movements or fluctuations in the value of an asset, commodity, or currency. The hedger typically enters into offsetting positions or contracts to balance out potential losses incurred on their primary investment. By doing so, they effectively lock in a predetermined price or minimize the impact of future price changes, allowing them to stabilize their future cash flows or protect their underlying assets.
Hedgers may include farmers who use derivatives to hedge against unpredictable agricultural price fluctuations, businesses that hedge against currency exchange rate risks, or investors who seek to protect their portfolios from adverse market movements. They often work with the guidance of financial advisors or experts knowledgeable in hedging strategies to develop a successful risk management plan.
Overall, a hedger is an individual or entity that engages in hedging activities, employing various financial instruments to reduce potential risks and uncertainties in their investments or transactions. These risk management techniques help safeguard against losses and maintain stability and consistency in financial outcomes.
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One who repairs or makes hedges.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for HEDGER
Etymology of HEDGER
The word "hedger" is derived from the Old English term "hecgere", which referred to someone who worked with hedges. The Old English term further traces its origins to the Proto-Germanic word "khagjo", meaning "enclosure". Over time, "hecgere" evolved into "hedge-ward" and eventually transformed into "hedger", which is the modern English form of the word. The original role of a hedger was to create and maintain hedges, which were commonly used as field boundaries or to enclose livestock.
Similar spelling words for HEDGER
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