Zoho Bookings & SalesIQ Alignment

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Hedge

Meaning: 

A Hedge is a financial strategy used to protect yourself from potential losses in an investment. It works like an insurance policy for your portfolio. In simple words, hedging means reducing risk.

Example:

If you own stocks but worry the market might go down, you can buy options or futures to limit your loss. That protection is called a hedge.

How to understand Hedging:

Hedging helps keep your investments safe during market ups and downs.
It is useful for investors who want to protect their money.

Importance of Hedging:   

Hedging reduces risk and helps stabilize your investment portfolio.