What is the definition of Over-Hedging?
- Posted on November 20, 2019
- Financial Terms
- By admin admin
Over-hedging is a term used in trading to refer to when a position has been hedged so much that there is no (or very little) opportunity for profit, i.e. your hedge cancels out your main position. This does also mean you cannot lose money, but not being able to make money defeats the purpose of investing.
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