Page 4 - PowerPoint Presentation
P. 4

HEDGING



            What Is Hedging ?







            • Hedging is a tool used by organisations to limit the


                risk of loss from changes in the


                    • prices of commodities,


                    • currencies or securities,


                    • foreign exchange risk, and


                    • interest rate risk.


            • The best way to understand hedging is to think of it


                as insurance. When people decide to hedge, they are


                insuring themselves against a negative event.









                                                                                                                                       4
   1   2   3   4   5   6   7   8   9