Risk

What is Hedge?

An investment that offsets losses in another

Full Explanation

Hedging means making an investment that gains when your other investment loses. It's insurance. Options, inverse ETFs, and gold are common hedges.

Pro Tip

Hedging costs money (like insurance). You pay for protection whether you need it or not.

Stop Loss

An automatic sell order if a stock drops too much

Short Selling

Betting that a stock will go down

Position Sizing

Deciding how much of your money to put in one stock

Correlation

How closely two investments move together

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