Hedging is a strategy that seasoned investors and professional money managers often use to reduce – or even completely eliminate – the risk of one of their securities purchases. By strategically buying or selling puts and calls, investors can do exactly this.
Professional money managers are often given the mandate of making money for their clients. However, not every investment they make will make money. It is important in these situations that they take actions in order to ensure they won’t lose money in a worst case scenario – which is where hedging comes in.
Hedging has long been a tool reserved only for finance pros. However, with FlashCourse, you can learn how to do it yourself – and have fun doing it. Get the free FlashCourse app for iOS and Android to learn more.
Hedging with Hedgehogs
Chapters In This Course Include…
- Basics
- Long Stocks, Long Puts
- Long Stocks, Short Calls
- Short Stocks, Long Calls
- Short Stocks, Short Puts
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