Difference between Hedging and Hedge

What is the difference between Hedging and Hedge?

Hedging as a verb is to enclose with a hedge or hedges. while Hedge as a verb is to enclose.

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.

We hope you now know whether to use Hedging or Hedge in your sentence.

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