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Hedging

When we hold a particular share, it has some risks involved in it, we have to aware of those risks. You can reduce your risks by putting various features. Hedging is a way of protecting your investment. Buy buying a put option you can minimize the risk when the price of the particular stocks is being dropped. But you should not buy a put option for an individual share. Because it turns too expensive. Buy a put option on share market itself, it is the best way to minimize the risk. This protects you at the general market declines. Try hedging and minimize your risk while trading.

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