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Hedging means to safeguard yourself from various losses occurring from unforeseen circumstances. You can correlate hedging with insurance that you purchase in your real lives for you, your loved ones or for your personal belongings, so that it minimizes your losses from any bad events in future.
In financial terms, hedging is known as a risk management technique that delves on eliminating the threat of uncertainty and minimizing losses in case of any unexpected future event.
Know in detail about what is hedging in stock market » ?
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