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hedgen

to hedge

verb HEJ-en Rare
People & Society Money

Origin: from English 'hedge'

Also means

to reduce financial risk through offsetting positions

Usage Note

hedgen is the German financial verb for entering a derivative position to offset risk in an underlying exposure. Companies hedgen currency risk with forward contracts or options; the term is firmly established in German financial language.

Examples

"Der Exporteur hedgte sein Währungsrisiko mit einem Devisentermingeschäft."

Natural Translation

The exporter hedged his currency risk with a foreign exchange forward contract.

Literal Translation

The exporter hedged his currency-risk with a foreign-exchange-forward-deal.

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