This operation saves funds from being affected by adverse changes in the market. This is achieved, as a rule, by making counter purchases or selling assets. Also, by combining both deals to buy and to sale on related tools, risks can be reduced. To learn more about the techniques of hedging and to understand the intricacies, you can read the book “Hedging Strategy” by Sherry de Kovno and Christine Tucci, as well as reading the book “Hedge hogging”.

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