DISCOUNT RATE
Discount rate is the interest rate used to determine the present value of future cash flows.
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Hedging is a risk management strategy used by traders and investors to offset potential losses in one asset by taking an opposing position in a related asset. In trading, hedging involves using financial instruments like options, futures, or currency contracts to protect against adverse price movements. Traders use hedging to reduce exposure to volatility and market risks. While it can limit potential profits, hedging is valuable in volatile markets to preserve capital and protect investment portfolios.