Hedging
Part of speech: verb
Definition: To enclose with a hedge or hedges.
Hedge
Part of speech: noun
Definition: A thicket of bushes, usually thorn bushes; especially, such a thicket planted as a fence between any two portions of land; and also any sort of shrubbery, as evergreens, planted in a line or as a fence; particularly, such a thicket planted round a field to fence it, or in rows to separate the parts of a garden.A non-committal or intentionally ambiguous statement.Contract or arrangement reducing one's exposure to risk (for example the risk of price movements or interest rate movements).Used attributively, with figurative indication of a person's upbringing, or professional activities, taking place by the side of the road; third-rate.
Part of speech: verb
Definition: To enclose.To obstruct.To offset the risk associated with.To avoid verbal commitment.To construct or repair a hedge.To reduce one's exposure to risk.
Example sentence: Common hedging techniques include shorting stocks, buying put options, writing call options, and various types of leverage and paired transactions. While I do reserve the right to use these tools if and when appropriate, my firm opinion is that the best hedge is buying an appropriately safe and cheap stock.