hedge

word

Definition

A hedge is a row of bushes or small trees planted close together, often used as a fence. In finance, a hedge is also an action or tool to protect against loss from price changes.

Usage & Nuances

As a noun, 'hedge' most commonly means a natural fence in gardens. In finance, 'hedge' is used for risk reduction ('hedge your bets'). As a verb, it can also mean to avoid giving a direct answer ('to hedge your answer').

Example Sentences

There is a tall hedge around the garden.

basic

They trimmed the hedge last weekend.

basic

Farmers plant a hedge to protect their crops from wind.

basic

We invested in gold as a hedge against inflation.

natural

He always tries to hedge his answers, so he never really says yes or no.

natural

The company used foreign investments to hedge currency risks.

natural