Hedging - Dictionary Definition and Overview

Hedging :  (noun)
1: any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change [syn: hedge]
2: an intentionally noncommittal or ambiguous statement; "when you say `maybe' you are just hedging" [syn: hedge]

Based on WordNet 2.0

Hedge \Hedge\, v. t. [imp. & p. p. Hedged; p. pr. & vb. n. Hedging.] 1. To inclose or separate with a hedge; to fence with a thickly set line or thicket of shrubs or small trees; as, to hedge a field or garden.

2. To obstruct, as a road, with a barrier; to hinder from progress or success; -- sometimes with up and out.

I will hedge up thy way with thorns. --Hos. ii. 6.

Lollius Urbius . . . drew another wall . . . to hedge out incursions from the north. --Milton.

3. To surround for defense; to guard; to protect; to hem (in). ``England, hedged in with the main.'' --Shak.

4. To surround so as to prevent escape.

That is a law to hedge in the cuckoo. --Locke.

To hedge a bet, to bet upon both sides; that is, after having bet on one side, to bet also on the other, thus guarding against loss.

Based on WordNet (r) 2.0 (August 2003)
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