Used to show careful management of money or investments to avoid losses. Many investors hedge against market volatility by diversifying their portfolios.
Pro Tip 2/3
Uncertainty Prevention
Expresses action taken to prevent negative outcomes in uncertain situations. Companies often hedge against currency fluctuations when doing business internationally.
Pro Tip 3/3
Not Foolproof
It means reducing risk, not eliminating it; there's no guarantee against loss. He hedged against the drop in oil prices, but it was not a foolproof plan.