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LSDefine

Simple English definitions for legal terms

hedge

Read a random definition: shared parenting

A quick definition of hedge:

Term: HEDGE

Definition: When you make a bet or investment, you can protect yourself from losing money by making another bet or investment that will cancel out the first one. This is called hedging. It's like wearing a helmet when you ride a bike to protect your head from getting hurt if you fall.

A more thorough explanation:

Definition: To use two transactions that balance each other out to ensure that you don't lose money; to make arrangements in advance to protect yourself from losing money on an investment, speculation, or bet. For example, a buyer of commodities might buy insurance to protect against unfavorable price changes.

Example: Let's say you own a company that relies on a certain commodity, like oil, to make your products. You're worried that the price of oil might go up, which would hurt your profits. To protect yourself, you could buy futures contracts for oil at the current price. If the price of oil goes up, you'll make money on the futures contracts, which will offset the higher cost of buying oil for your company. If the price of oil goes down, you'll lose money on the futures contracts, but you'll save money on buying oil for your company. Either way, you're protected from losing too much money.

This example illustrates the definition of a hedge because the company is using a transaction (buying futures contracts) to offset the risk of losing money on their investment in oil. By doing this, they're ensuring that they won't lose money no matter what happens to the price of oil.

hedagium | hedonistic utilitarianism

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Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
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