Over-Hedging

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Over-Hedging

The practice of taking an offsetting position on an investment to reduce its risk where the offsetting position is greater than the original position. For example, one may buy 100 shares of AT&T and then buy a put option, giving one the right, but not the obligation, to sell 125 shares of AT&T. While this completely eliminates the risk associated with the first 100 shares declining in price, over-hedging creates a new risk for the extra 25 shares in the put contract.

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Buy Hedge Buying Hedge Chinese Hedge Convertible Arbitrage Delta Cross-Hedge Delta Hedge Delta Hedging Doing the Reverse Desk Event Driven Hedge Hedge Fund Hedge Ratio Hedgie Hedging Effectiveness inflation hedge Long Hedge Neutral Hedge Perfect Hedge Selective Hedging			Outorgado Outorgante outparcel Outperform Output Gap Output Tax Outright Futures Position Outright Quote Outright Rate Outside Audit Outside Director Outside Earnings Outside Market Outside of you Outside Reversal Outsourcing Outstanding outstanding balance Outstanding Capital Stock Outstanding Debt Outstanding Dividends Outstanding share capital Outstanding Shares Over the Counter over-and above money Over-Hedging Over-the-Counter Over-the-Counter Bulletin Board Over-the-Counter Market Over-the-Counter Option Over-the-Counter Stock Overadvance overage overall capitalization rate Overall FTC limitation Overall Market Price Coverage overall rate of return Overallotment Overallotment Option Overapplied Overhead Overbase Compensation Overbooked Overborrowed Overbought Overbought-Oversold Indicator overbuilding Overcapitalization Overcharge Overcollateralization Overdepreciation Overdraft			Over-Clocked Processor Over-Complete Dictionary Over-Complete Wavelet Transform Over-Constrained Dispatch Over-consumption over-correct Over-Crossing over-crowding Over-Current Latchup Protection Over-damping Over-damping Over-damping OVer-DEDuction Over-Determined Sub-Band Over-Draft Protection over-eager over-egg the pudding over-embellish over-embellished Over-equipped Over-Excitation Limiter Over-fishing Over-Flow Drain Over-garment Over-grazing Over-ground Car Park Over-Hedging Over-hunting Over-hunting Over-hunting Over-indulgence Over-indulgence Over-Investment Over-Investment Over-Issue Over-Issue Over-Issued Over-Issued Over-Issues Over-Issues Over-Issuing Over-Issuing Over-lay Over-lay Over-lay Over-lay Over-lighting Over-mantel Over-Margined Over-Molded Thin Package Over-population Over-population Over-population Over-Pressure Operations Over-pressurisation Over-pressurisation Over-pressurisation

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