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Glossário de trading

Hedge

Risk Management

O que significa

A position opened to offset the risk of another position. If your main trade loses, the hedge should gain, reducing the total damage.

Exemplo

You hold $50,000 of long SPY and buy a $500 put option that pays off if SPY crashes. If the market drops 10%, your long loses $5,000 but the put gains about $4,000, softening the blow.

Erro comum de iniciantes

Beginners hedge every trade and watch their gains evaporate into hedge costs. A hedge is insurance -- it has a price; over-hedging guarantees you cannot make money.

Termos relacionados

  • Correlation — How much two assets move together, from -1 (opposite) to +1 (identical). 0 means no relati…
  • Diversification — Spreading risk across different assets, strategies, or markets so a single bad event canno…

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