# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Hedge

An investment strategy to reduce risk of loss from price fluctuations of securities.

Investors often try to hedge against inflation by purchasing assets such as gold or real estate that will rise faster than inflation. Mutual fund managers and pension fund managers often hedge their exposure to currency or interest rate risk by buying or selling futures or options contracts.

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