what is hedging a position

Discussion in 'Trading' started by qwert, May 18, 2009.

  1. qwert


    what is hedging a position and how can money be made if a opposite position is established canceling the original position?
  2. MTE


    Hedging doesn't necessarily mean taking a position that fully offsets the original one. You can be long stock and buy a put option to hedge the downside, for example.