What is Hedging?
Hedging (also called hedge) — Taking an offsetting position to reduce the risk of adverse price moves in an existing holding.
In simple terms
Buying a put option hedges a stock portfolio against a fall.
Why Hedging matters when you invest
Understanding hedging helps you make better-informed decisions when you invest and trade on ROAR by DP TradeKING. Open a free account to put it into practice — ₹0 delivery brokerage and zero-commission direct mutual funds.
Hedging — frequently asked questions
What is Hedging?
Taking an offsetting position to reduce the risk of adverse price moves in an existing holding.
What does Hedging mean in the stock market?
Taking an offsetting position to reduce the risk of adverse price moves in an existing holding. Buying a put option hedges a stock portfolio against a fall.
Can you give an example of Hedging?
Buying a put option hedges a stock portfolio against a fall.
Put it into practice — open a free account.
Enter your mobile number to get started — then download the ROAR app to finish KYC in about 10 minutes.