Learn how hedging strategies help reduce risk in your portfolio. Discover simple, timeless ways to manage financial uncertainty with confidence.

Modest stock declines tend to make investors—and many pundits—fret that a catastrophic decline is about to pummel the market. It is a reflex that often arises after stocks have exhibited great vigor, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Roger Wohlner is an experienced financial ...

Sham Gad is a seasoned and well-respected financial journalist, as well as an expert in a wide variety of financial topics. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial ...

The guide explains hedging bets, showing when to hedge, how profits change, and why they matter for managing risk in sports betting.

Betting on sports can be a fun, low-frills hobby, but the best way to handle betting long-term is by planning your ways to win meticulously. One common strategy with betting can even ensure winning at ...

Implied volatility skew and low VIX signal complacent markets, potential for larger correction than previous drawdowns. Factors such as yield curve inversion, devaluation of Japanese yen, and ...

A hedge ratio is a financial metric investors use to measure the level of risk exposure covered by a hedge. This ratio plays a role in managing potential losses by indicating the proportion of a ...

VXX matches Nasdaq 100 volatility better than SQQQ, making it a superior hedge for tech growth exposures during volatile market conditions. VXN, the CBOE NASDAQ-100 Volatility Index, is a key measure ...