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Many hedging strategies involve the use of derivatives (securities
that derive their values from other securities). Derivatives give investors
the future opportunity to buy or sell securities at fixed prices, no matter
how much the market changes. Two of the most common derivatives are options
and futures. Other hedging techniques involve moving your investments around
into different assets as markets change, and borrowing money off one investment
to make another. Stocks, bonds, commodities, and even currency can be hedged.
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