Q qwert May 18, 2009 #1 what is hedging a position and how can money be made if a opposite position is established canceling the original position?
what is hedging a position and how can money be made if a opposite position is established canceling the original position?
M MTE May 18, 2009 #2 Hedging doesn't necessarily mean taking a position that fully offsets the original one. You can be long stock and buy a put option to hedge the downside, for example.
Hedging doesn't necessarily mean taking a position that fully offsets the original one. You can be long stock and buy a put option to hedge the downside, for example.
