What Is Hedging?
-
What Is Hedging?
Hedging is a risk management strategy used by individuals and institutions to mitigate potential losses that could occur in an investment. An Example of Hedging Your Bitcoin Position Imagine you have a $10,000 investment in BTC, and you wish to safeguard against a potential decline in its value. Here’s how you can hedge your position:…
-
What Is Hedging?
Hedging is a vital risk management approach employed by both individuals and institutions to mitigate potential losses stemming from investments. Drawing a parallel with acquiring insurance, consider owning a residence in a flood-prone region — obtaining flood insurance is a prudent step to safeguard the asset from the perils of flooding. In the spheres of…