Go Back   ManagementParadise.com | Management & Business Education Learning Platform Quiz , Marketplace and Community games > Stock Markets Tips & Gyan !!

Hedging against the stocks

Discuss Hedging against the stocks within the Stock Markets Tips & Gyan !! forums, part of the Quiz , Marketplace and Community games category; Nowadays, there are ways to make money whether the stock is up or coming down. One way is to hedge ...

Reply

 

Thread Tools Display Modes
Hedging against the stocks
Old
 (1 (permalink))
Claude90
Claude90 is an unknown quantity at this point
 
Claude90
 
Institute: SVU
Status: Offline
Posts: 4
Join Date: Nov 2008
Hedging against the stocks - November 24th, 2008

Nowadays, there are ways to make money whether the stock is up or coming down. One way is to hedge it against the newer derivatives, including stock options. This technique protects you and makes you money in the process and is a powerful investing tool.
Advertisements




To view links or images in signatures your post count must be 0 or greater. You currently have 0 posts.
Friends: (0)
Reply With Quote
Re: Hedging against the stocks
Old
 (2 (permalink))
sara.corner007
sara.corner007 is an unknown quantity at this point
 
sara.corner007
 
Institute: D.U
Status: Offline
Posts: 6
Join Date: Dec 2008
Re: Hedging against the stocks - December 10th, 2008

Hedging is a way of reducing some of the risk involved in holding an investment. There are many different risks against which one can hedge and many different methods of hedging. When someone mentions hedging, think of insurance. A hedge is just a way of insuring an investment against risk.

Consider a simple (perhaps the simplest) case. Much of the risk in holding any particular stock is market risk; i.e. if the market falls sharply, chances are that any particular stock will fall too. So if you own a stock with good prospects but you think the stock market in general is overpriced, you may be well advised to hedge your position.
Friends: (0)
Reply With Quote
The Following User Says Thank You to For This Useful Post:
Re: Hedging against the stocks
Old
 (3 (permalink))
ClubZone
ClubZone is an unknown quantity at this point
 
ClubZone
 
Institute: KU University
Status: Offline
Posts: 68
Join Date: Dec 2008
Re: Hedging against the stocks - December 19th, 2008

Many people including me have learnt this the hard way after loosing some bucks but yes its always good to learn at some point.


............//\\\\
...........///_\\\\
..........||.^|^\\\
..........))\_-_/ ((\
..........)'_/.".\_`\)
......././._.\.../...\
.....././(_.\x/._).|
.......\.\.)".|."(/./
........\.'...'.. //./
......./....`..././
.......|....__.\.\
.......|.../.\...\
.......|..|...\...\
.......|..|....\...\
.......|..|......\..\
.......|..|.......\..\
.......|..|........\..\
.......|..|.........\..\
....../__\.........|__\
......./.|............|.\_.
......`-''.............``--
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
hedging, stocks


Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.



Search Engine Optimization by vBSEO ©2011, Crawlability, Inc.