News From Press How to hedge your investments in stocks using derivatives

How to hedge your investments in stocks using derivatives

Source: Moneycontrol Dec 28, 2016

We do buy insurance to protect ourselves from a possibility of financial loss caused by an event. Hedging is like insurance wherein an investor or trader in stock market would like to reduce the risk he is exposed to. Every individual trading in stock market is also exposed to a certain risk. In the event of adverse market movements, hedging simply protects trading positions from incurring a loss. This can be best understood with an example.

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