™A $10,000 position moving 10% changes by $1,000; hedge helps place that movement in the context of the wider portfolio.
Risk & Portfolio
Hedge
A position intended to offset some risk in another holding; hedges have costs and may be imperfect.
Plain-English context
Why it matters
This concept helps describe how one position or behavior can affect the resilience of an entire portfolio.
Assuming Hedge removes risk rather than describing or redistributing part of it.
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