Another Word For Hedging

Meaning

Hedging refers to the practice of making an investment to reduce the risk of potential losses or uncertainties. In a broader context, it can also mean avoiding commitment by being non-committal or ambiguous in one's statements or actions. Essentially, it is a way to protect oneself from negative outcomes.

Synonyms

• Mitigating
• Protecting
• Safeguarding
• Buffering
• Qualifying

Antonyms

• Committing
• Exposing
• Risking
• Entrusting
• Certifying

Etymology

The word "hedging" comes from the Old English word "hecg," meaning "a fence or boundary," which reflects the idea of establishing limits or protections. It evolved into the financial term used in trading and investments, where it describes strategies to minimize risk.

Examples

1. The investor decided to hedge his portfolio by purchasing options to protect against market fluctuations.
2. Instead of providing a straightforward answer, she opted for hedging her response, leaving room for interpretation.
3. Businesses often use hedging strategies to guard against unpredictable changes in currency exchange rates.