Spread Betting Glossary: H

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H

Hedge fund
A managed fund responsible for investing and trading with assets, taking both a management fee and a percentage of the upside gain. Potentially profitable but volatile, relying heavily on leveraged positions and derivative trading.
Hedging
Hedging is the process of taking a second contradictory position in another market with a view to offsetting the potential risks from the first position. Hedging aims to reduce the risks associated by one transaction falling through an inversely correlated transaction.