Hedging is the practice of reducing risk exposure by opening positions in two different instruments that are either inversely correlated or cancel each other out.
Did you know?
Have you ever heard of Monte Dei Paschi di Siena? Founded in 1472 in Tuscany, Italy, it is considered to be the world’s first actual bank and is still in operation today.
Word of the day
"Straddle" - The strategy of employing limit orders to trade on significant price movements in either direction.
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