Spread Betting Glossary: H
1. 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.
2. 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.