Hedging is a risk management strategy in which you use financial instruments or transactions to protect your assets from unfavorable market changes. The goal of hedging is to minimize potential losses by offsetting them with profits from
A simple example: if you have an asset and you fear that its price will drop, you can open a short position on the exchange. If the price of the asset decreases, the losses on your asset will be compensated by the profits from the short position.
