What is Hedging?

September 15th, 2020

Commonly used by institutions, corporations & retail traders, hedging is a risk management strategy used to offset potential losses from individual positions or an entire portfolio.

According to Will of Pure Financial Academy, “It can act as a form of insurance on the actual investment in the event that it doesn’t go in your favor.”

In his webinar Introducing Push Button Hedging Directly from a Chart, Will Busby of Pure Financial Academy explains what hedging is, how it works, and also provides detailed examples of hedging in action on charts. Will explains that his favorite hedging tools are derivatives such as futures and options, which allow traders to offset their entire portfolios at once.

Learn more in this 5-minute video excerpt:

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