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Home > QFINANCE Dictionary > Definition of hedging

Definition of


  • hedging against inflation Stockholding & Investments

    investing in order to avoid the impact of inflation, thus protecting the purchasing power of capital. Historically, equities have generally outperformed returns from savings accounts in the long term and beaten the retail price index. They are thus considered as one of the best hedges against inflation, although no stock market investment is without risk.

Recommended Further Reading (Term count)
  • Currency Risk
    Currency risk refers to the possibility that movements in foreign exchange rates could affect the value of a business operation or an investment. Whenever an investment or agreement is made based on one currency, movements of that currency against other currencies can have a significant impact on the value or performance for investors or partners using other base currencies. For example, a US investor choosing to invest in German equities could...

Definitions of ’hedging’ and meaning of ’hedging’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’hedging’ and other financial terms with our online QFINANCE Financial Dictionary.

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