Answer / t.mahesh reddy

hedging is a tool for reducing the risk for an investor by
using proper derivatives such as
options,futures,swaps,forwards.Hedging is to protect the
investor from the intrst rate fluctuations and also
exchange rate flutuations.

Answer / paa

It is a tool use to minimize the risk.

Answer / jagadish

hedging in short is reducing or bringing down the risk is
called hedging

Answer / smith

Hedging is the process of eliminating exposure to foreign
exchange risk so as to avoid potential losses from
fluctuations in exchange rates. In addition to avoiding
possible losses, companies hedge foreign currency
transactions and commitments so as to introduce an element
of certainty into the future cash flows resulting from
foreign currency activities. Hedging involves establishing
a price today at which foreign currency can be sold or
purchased at a future date.

Answer / pranai

Hedging is a concept. It is emerged with derivative market.
this concept is used for reduce or eliminate risk of the particular security. (underlying asset)

Answer / sri

Hedging is the mechanism of reduce risk.

Answer / sivareddyn

hedging approach we gather the working capital from the
long term sources when ever firm need more working capital
more than actual they procure from short term sources is
called hedging.

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