Hedging Meaning With Example. A farmer is one example of a hedger. Hedging with forex is a strategy used to protect one's position in a currency pair from an adverse move.
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You own an assortment of assets that don't rise and fall together. Farmers grow crops—soybeans, in this example—and carry the risk that the price of their soybeans will decline by the time they're harvested. Definition of hedging: A risk management strategy used in limiting or offsetting probability of loss from fluctuations in the prices of commodities, currencies, or securities..
In writing, hedging words are used to convey certainty.
Farmers can hedge against that risk by selling soybean futures, which could lock in a price for their crops early in the growing season.
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In this post, we discuss hedging in academic writing and look at some examples of hedging sentences. Contrast this with using adverbs to boost other words or be assertive and intensifiers, which amplify a term. Hedging is typically employed in two ways.