Hedge
An investment strategy to reduce risk of adverse price movements. In India, traders commonly hedge equity positions using Nifty or stock futures and options.
Related Terms
Average Price
The weighted average cost at which you purchased shares of a stock, calculated by dividing total cos...
Beta
A measure of a stock's volatility relative to the overall market. Beta of 1 means the stock moves wi...
CAGR
Compound Annual Growth Rate. The annualized rate of return that smooths out volatility, showing how...
Call Option
A derivative contract that gives the buyer the right (but not obligation) to buy an underlying asset...
Demat Account
A dematerialized account that holds shares and securities in electronic form, eliminating the need f...
F&O
Futures & Options. Derivative instruments traded on NSE/BSE that derive their value from underlying...