Investing 101

What is Hedge Trading

Hedging is actually an insurance for trader’s profit/losses against adverse market conditions. Technically, hedge trading can be defined as a process to eliminate the risk of erratic price fluctuations in the market. Various hedging techniques can protect your stock against various types of risks. It protects your capital against fluctuation in prices due to change in demand and availability of various basic commodities such as metal, agricultural commodities, etc. It