Hedging
Offsetting or guarding against investment risk. A perfect hedge is a no-risk-no gain precaution.A conservative strategy for reduction of risk through futures, options or some other derivative, by opening an opposite position to that already held in the underlying market. Taking positions in securities so that each offsets the other.
Holding Period Return (HPR)
The rate of return for the period of holding of an investment.
Holder
The buyer of an option.