Definitions for "Currency hedging"
Policy of protecting a portfolio against currency fluctuations (and large losses) by investing in a combination of currency options and futures and other diversified investments.
Trying to reduce or eliminate exchange rate risks by buying forward, using financial features or borrowing in the exposed currency.
The use of currency futures and options transactions to protect the value of investments and cash against fluctuations in exchange rates relative to the currency in which the fund is denominated.
Taking protective positions to safe-guard open currency positions.
A technique used to offset the risks associated with the changing value of currency.