Managing risk is an essential part of securing your gains from unwanted volatility. In addition to simpler things you hear all the time such as portfolio diversification, risk can be further minimized by hedging – the process of getting into a position opposite the existing one to offset potential investment losses. Hedging can also be considered a sort of insurance that minimizes the effects of negative price action on your holdings. Now, there are multiple ways to hedge against risk. In thi...

Managing risk is an essential part of securing your gains from unwanted volatility. In addition to simpler things you hear all the time such as portfolio diversification, risk can be further minimized by hedging – the process of getting into a position opposite the existing one to offset potential investment losses. Hedging can also be considered a sort of insurance that minimizes the effects of negative price action on your holdings. Now, there are multiple ways to hedge against risk. In thi...