Hedging is the process in which derivatives are used to reduce risk exposure.
<h3>What is hedging?</h3>
Hedging is a strategy that is used to limit risks attached to financial assets.
It is management strategy requires buying or selling an investment to potentially reduce the risk of adverse changes in price.
Therefore, the process in which derivatives are used to reduce risk exposure is hedging.
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An idea that is stated directly in the text
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