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Topic
Hedging
5 guides in Finabase Learn
- Derivatives explained: forwards, futures, options and swaps What a derivative is, how the four basic contracts differ, notional value, hedging versus speculation, counterparty risk and clearing, with worked dollar examples.
- Gold A precious metal traded as a commodity and held as a store of value and hedge, quoted in US dollars per troy ounce.
- Hedge A position taken to offset the risk of another, such as buying a put option to protect a stock holding against a fall.
- Inverse ETF An ETF designed to return the opposite of an index's daily move, using derivatives; it decays when held over volatile periods.
- Protective put Buying a put option on a stock you own so that losses below the strike price are capped, in exchange for the premium paid.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.