Hedging

Hedging

Strategy used to protect a position or an entire portfolio against losses.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Banking
Category: Investment banking
Company: UBS
Product:
Acronym-Abbreviation:

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Related terms

hedges

Accounting; Auditing

protect an entity against the risk of adverse price or interest-rate movements on its assets, liabilities, or anticipated transactions. A hedge avoids or reduces risk by ...

hedging

Banking; Investment banking

Strategy used to protect a position or an entire portfolio against losses.

hedge

Banking; Investment banking

Also: hedging transaction. Countertrade or covering transaction designed to offset an existing or potential risk position by eliminating or diminishing the element of risk, in ...

hedge

Economy; Economics

Reducing your risks. Hedging involves deliberately taking on a new risk that offsets an existing one, such as your exposure to an adverse change in an exchange rate, interest rate ...

hedging

Financial services; Commodity exchange

Taking a position in a futures market opposite to a position held in the cash market to minimize the risk of financial loss from an adverse price change; a purchase or sale of ...

dirty floating

Banking; Investment banking

Currency policy which in principle recognizes the free movement of exchange rates but where interventions are nonetheless made with some frequency in an attempt to influence the ...

economic viability

Banking; Investment banking

Credit system mainly used in property financing and defined as the burden on the borrower's income (expressed as a percentage) that the cost of a property will incur.

summary bill enforcement procedure

Banking; Investment banking

Especially rapid summary bankruptcy proceedings brought against bill and cheque debtors whose names are entered in the commercial register.

share index

Banking; Investment banking

Indicator showing changes in the average prices of shares or groups of shares on the stock market. In Switzerland the most commonly used equity price indices are the Swiss ...

benchmark

Banking; Investment banking

Reference parameter (e.g. a share index or an index portfolio) used to compare the performance of a portfolio. A benchmark that is an index is also called a reference index.