Series 7: 5.4.2. Hedging Strategies

Taken from our Series 7 Online Guide

5.4.2. Hedging Strategies

Unlike speculative strategies, hedging strategies are made, not to increase income, but to reduce risk. More specifically, a hedge is a transaction made to reduce the risk of an already existing investment position by taking an offsetting position. Of course, a hedge cannot limit the risk of loss without compromising the likelihood of gain.

Since you're reading about Series 7: 5.4.2. Hedging Strategies, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 7
Please Enable Javascript
to view this content!