A hedge is an investment seat intended to offset potential losses that may survive incurred past times a companion investment. A hedge tin survive constructed from many types of fiscal instruments, including stocks, exchange-traded funds, insurance, frontward contracts, swaps, options, many types of over-the-counter in addition to derivative products, in addition to futures contracts. Public futures markets were established inwards the 19th century to let transparent, standardized, in addition to efficient hedging of agricultural commodity prices; they have got since expanded to include futures contracts for hedging the values of energy, precious metals, unusual currency, in addition to involvement charge per unit of measurement fluctuations. Etymology Hedging is the exercise of taking a seat inwards 1 marketplace seat to offset in addition to residuum against the peril adopted past times assuming a seat inwards a opposite or opposing marketplace seat or investment. The give-and-take h...