what is hedging and how it work

What is hedging
Definition

hadge karna, fnans mein, kisi asasa ya sarmaya kaari meiin position lena hai jo mojooda position ki qeemat ke khatray ko kam karta hai. is liye aik hadge aik tijarat hai jo kisi dosray asasay mein qeemat ki manfi harkat ke khatray ko kam karne ke maqsad se ki jati hai. aam tor par, aik hadge mutaliqa security mein mukhalif position lainay par mushtamil hota hai ya hadge kiye jane walay asasay ki bunyaad par mushtaq security mein .

mushtaq un ke bunyadi asason ke khilaaf muaser hijz ho satke hain kyunkay dono ke darmiyan talluq kam o besh wazeh tor par bayan kya gaya hai. mushtaq sikyortiz hain jo aik ya ziyada bunyadi asason ke sath khat o katabat mein muntaqil hoti hain. un mein ikhtiyarat, tabadlah, mustaqbil, aur agay ke muahiday shaamil hain. bunyadi asasay stock, band, ashya, currency, asharih jaat, ya sharah sood ho satke hain. aik tijarti hikmat e amli tarteeb dainay ke liye مشتقات ka istemaal mumkin hai jis mein aik sarmaya kaari ke nuqsaan ko kam kya jata hai ya taqabli mushtaq mein faida ke zariye poora kya jata hai .



How A hedge work


hadge ka istemaal kisi had tak insurance policy lainay ke mutradif hai. agar aap selaab zada ilaqay mein aik ghar ke maalik hain, to aap selaab ki bema le kar is asasay ko selaab ke khatray se bachana chahain ge - dosray lafzon mein is ki hifazat karna. is misaal mein, aap selaab ko nahi rokkk satke, lekin aap selaab anay ki soorat mein khatraat ko kam karne ke liye waqt se pehlay mansoobah bana satke hain .

beijing mein aik rissk reward trade of hai ؛ jabkay yeh mumkina khatray ko kam karta hai, yeh mumkina fawaid ko bhi kam karta hai. seedhay alfaaz mein, beijing muft nahi hai. selaab insurance policy ki misaal ke muamlay mein, mahana adayigyon mein izafah hota hai, aur agar selaab kabhi nahi aata hai, to policy holdar ko koi adaigi nahi millti hai. phir bhi, ziyada tar log –apne suron par achanak chhat kho dainay ke bajaye is pishin goi, had se ziyada nuqsaan ka intikhab karen ge .


Spread hedging


index ki jagah mein, qeematon mein aitdaal pasand kami kaafi aam aur intehai ghair mutawaqqa hai. is shobay par tawajah markooz karne walay sarmaya karon ko ziyada shadeed logon ki nisbat motadil kami se ziyada tashweesh la-haq ho sakti hai. un sooraton mein, aik reechh poat spread aik mushtarqa beijing hikmat e amli hai .

is qisam ke phelao mein, index sarmaya car aik aisa poat kharidata hai jis ki strike qeemat ziyada hoti hai. is ke baad, woh kam strike price ke sath aik poat bichti hai lekin wohi khatam honay ki tareekh. is baat par munhasir hai ke index kis terhan bartao karta hai, is terhan sarmaya car ke paas qeemat ka tahaffuz do سٹرائیک qeematon ( minus laagat ) ke darmiyan farq ke barabar hota hai. agarchay yeh aitdaal pasand tahaffuz ka imkaan hai, lekin yeh aksar index mein aik mukhtasir kami ko poora karne ke liye kaafi hota hai .
Risk of hedging
beijing aik taknik hai jo khatray ko kam karne ke liye istemaal hoti hai, lekin yeh zehen mein rakhna zaroori hai ke taqreeban har beijing practice ke –apne manfi pehlu hon ge. sab se pehlay, jaisa ke oopar ishara kya gaya hai, beijing namukammal hai aur yeh mustaqbil ki kamyabi ki zamanat nahi hai, aur nah hi yeh yakeeni banata hai ke kisi nuqsaan ko kam kya jaye ga. balkay, sarmaya karon ko naffa o nuqsaan ke lehaaz se beijing ke baray mein sochna chahiye .

Re: What is hedging and how it Work

What is hedging

Dear members jesa k Hedging aik aisa financial concept hai jahan aik investor apni investment ko possible loss sy bachany ke liye kuch measures ya strategies use karta hai Yeh investment k risk ko kam karny ke liye use kiya jata hai aik example k tor par agar aik trader ny aik stock ko khraida hai or us k bare mein negative news any ki umeed hai to us waqt hedging ka use kar sakta hai jaisy k aik or stock buy kar leta hai jiski price negative news se kam affected ho ge ya phir aik call option buy kar sakta hai jis sy agar stock price fall karta hai to loss se bacha ja saky isi tarah sy hedging k istmal sy aikk investor apni investments ko safe kar sakta hai lekin is mein kuch extra cost bhi ho sakti hai Hedging aik bohat hi complex concept hai or usmein bohat sy factors hoty hain jo aik investor ko samajhna hota hai is kliye aik financial expert ki salah lena bahut zaruri hai


Understanding the hedging

Pyary dosto jesa k hum log janty hain k trade krny main hedging ka use hota hai or es ka mtlab yeh hota hai k jaab hum ny aik pair ko sell kiya howa hai to market us k opposite ja rahi hai or hamen boht zyada loss ho raha hai to hum ny jahan sy sell kiya hota hai wahan sy usi paair ko buy kr lety hain Hedging aik aisi risk management technique hai jis mai koi b trade krny wala ya organization apne financial risks ko kam karny ke liye aik dusry financial instrument ya position ko purchase ya establish karta hai Hedging k zariye jaisy k price volatility, interest rate risk currency risk commodity price risk credit risk etc Jab koi trader yeh organization hedging karty hain to unhy apni soch bichar k through apni position ko lock karna hota hai jis sy woh future me hone wale losses se bach saky for exemple company k paas kuchh stock hai or woh stock market mein hony waly khtrat sy bachna chahty hain to woh stock ki short selling ya futures ya options contract ko kharid sakta hai is tarike sy jab stock ki price girti hai to stock ko baich kar us k loss ko cover kar sakty hain Hedging kisi bhi financial instrument k mutabiq kiya ja sakta hai jaisy k stocks bonds options futures swaps

Important keys point

Hedging ek aisa tareeka hai jis sy log financial risk sy apna nuqsaan kam karny ki koshish karty hain is tareeqy mein kuch log apni investments ko kisi or cheez sy match karty hain jis se unhain loss ki sorat mein aik khaas amount ka nuqsaan nahi hota Mukhtalif qism ki hedging strategies hain jin mein sy kuch common tareeqy niche diye gye hain
exemples

No.1 Futures: is mein aik contract ka istemal kia jata hai jis se parties k beech aik maqsad k liye aik price py transaction kiya jata hai For example agar kisi company ko lagta hai k wo in the future mein aik maal khareedy ga to wo is cheez ko lock karne k liye aik futures contract sign kar leti hai Ais tarah wo future mein price increase hony ki sorat mein bhi pehly sy hi is maal ko kharidna ki guarantee kar leti hai
No.2
Options: Is tareeqe mein aik taraf ko kisi asset k liye payment karna hota hai jis sy unhain future mein kisi specific date tak us asset ko kharidny ka option mil jata hai Agar unhain wo asset khareedna hai to wo option istemal kar k us asset ko kharid skty hain agar nahi khareedna hai to unhain koi nuqsaan nahi hota
No.3
Swaps: Is tareeqy mein do parties apny cash flow streams ko exchange kar rahi hoti hain For example aik party apny fixed interest payments ko dusri party k variable interest payments sy swap kar leti hai Is tareeqy mein parties ko apni interest rate risk sy nijat mil jati hai in tamam strategies ka istemal is bat ko samjhty howey kia jata hai k agar kisi investment mein nuqsaan ho to us nuqsaan ko kisi or investment se cover kiya ja skta hai jis tarah hedging investors k liye aik boht paidar or best tarika hai jis sy wo apny financial risk ko kam kar sakty hain

How a hedge work

Hedging aik taqneeq hai jis sy hum apny loss ko kam krny main madad hasil krny k liye istmal krty hain jab hum trade kr rahy hoty hain to humen loss k agr humara account km amount wala ho to hum apny account ko safe rkhny k liye market main trade krty hain to hedge kr lety hain or dono itraf main tp ka istmal krty hain jis sy humara account kisi bary khatry sy bach jata hai Hedging ke liye humen apni investment ki opposing position liya jata hai Jaise ki aik share market main hum apny stock k downside risk se bachny ke liye us stock ki sell position letay hain jise short selling kaha jata hai Agar stock price nichy chali jati hai toh loss us short sell position se compensate ho jati hai Agar stock ke price bharti hai toh humen es ki actual stock holding se profit milta hai is tarah sy hedging humen market volatility k effects sy bacha leta hai

Re: What is hedging and how it Work

What is Hedging

Dear members jesa k Hedging ekaisa financial concept hy jahan ekinvestor apni investment ko possible loss sy bachany ke liye kuch measures ya strategies use karta hy Yeh investment k risk ko kam karny ke liye use kiya jata hy ekexample k tor par agar ektrader ny ekstock ko khraida hy or us k bare mein negative news any ki umeed hy to us waqt hedging ka use kar sakta hy jaisy k ekor stock buy kar leta hy jiski price negative news se kam affected ho ge ya phir ekcall option buy kar sakta hy jis sy agar stock price fall karta hy to loss se bacha ja saky isi tarah sy hedging k istmal sy aikk investor apni investments ko safe kar sakta hy lekin is mein kuch extra cost bhi ho sakti hy Hedging ekbohat hi complex concept hy or usmein bohat sy factors hoty hyn jo ekinvestor ko samajhna hota hy is kliye ekfinancial expert ki salah lena bahut zaruri hy or accurately ley sakty hn.


Spread Hedging

index ki jagah mein, qeematon mein aitdaal pasand kami kaafi aam aur intehy ghyr mutawaqqa hy. is shobay par tawajah markooz karne walay sarmaya karon ko ziyada shadeed logon ki nisbat motadil kami se ziyada tashweesh la-haq ho sakti hy. un sooraton mein, ekreechh poat spread ekmushtarqa beijing hikmat e amli hy .Is qisam ke phelao mein, index sarmaya car ekaisa poat kharidata hy jis ki strike qeemat ziyada hoti hy. is ke baad, woh kam strike price ke sath ekpoat bichti hy lekin wohi khatam honay ki tareekh. is baat par munhasir hy ke index kis terhan bartao karta hy, is terhan sarmaya car ke paas qeemat ka tahaffuz do سٹرائیک qeematon ( minus laagat ) ke darmiyan farq ke barabar hota hy. agarchay yeh aitdaal pasand tahaffuz ka imkaan hy, lekin yeh aksar index mein ekmukhtasir kami ko poora karne ke liye kaafi hota hy.

Risk of Hedging

beijing ektaknik hy jo khatray ko kam karne ke liye istemaal hoti hy, lekin yeh zehen mein rakhna zaroori hy ke taqreeban har beijing practice ke –apne manfi pehlu hon ge. sab se pehlay, jaisa ke opar ishara kya gaya hy, beijing namukammal hy aur yeh mustaqbil ki kamyabi ki zamanat nahi hy, aur nah hi yeh yakeeni banata hy ke kisi nuqsaan ko kam kya jaye ga. balkay, sarmaya karon ko naffa o nuqsaan ke lehaaz se beijing ke baray mein sochna chahiye .

Re: What is hedging and how it Work

Assalam o Alekum Friends kia hal hy ma umea krta hun sab dost thek thak hung y or apna ka b sahi tareky sy kr rhy hungy, Dost PAKISTAN FOREX FORUM bahut acha plareform hy jis per kam ker k bahut ziada log faida hasil krty hn. Ham sab ko chaheye k es plateform per kam kr k acha bonus hasil kr k apna acha rozgar bana skty hn.


WHAT IS HEDGING:

Dear members jesa k Hedging ekesa financial concept hy jahan ekinvestor apni investment ko possible loss sy bachany ke liye kuch measures ya strategies usy karta hy Yeh investment k risk ko kam karny ke liye usy kiya jata hy ekexample k tor par agar ektrader ny ekstock ko khraida hy or us k bare mn negative news any ki umeed hy to us waqt hedging ka usy kar sakta hy jesy k ekor stock buy kar leta hy jiski price negative news sy kam affected ho ge ya phir ekcall option buy kar sakta hy jis sy agar stock price fall karta hy to loss sy bacha ja saky isi tarah sy hedging k istmal sy ekk investor apni investments ko safe kar sakta hy lekin is mn kuch extra cost bhi ho sakti hy Hedging ekbohat hi complex concept hy or usmn bohat sy factors hoty hyn jo ekinvestor ko samajhna hota hy is kliye ekfinancial expert ki salah lena bahut zaruri hy or accurately ley sakty hn.


RISK OF HEDGING:

Beijing ektaknik hy jo khatray ko kam karne ke liye istemaal hoti hy, lekin yeh zehen mn rakhna zaroori hy ke taqreeban har beijing practice ke –apne manfi pehlu hon ge. sab sy pehlay, jesa ke opar ishara kya gaya hy, beijing namukammal hy aur yeh mustaqbil ki kamyabi ki zamanat nahi hy, aur nah hi yeh yakeeni banata hy ke kisi nuqsaan ko kam kya jaye ga. balkay, sarmaya karon ko naffa o nuqsaan ke lehaaz sy beijing ke baray mn sochna chahiye .

EXAMPLES

No.1
Futures: is mn ek contract ka istemal kia jata hy jis sy parties k beech ek maqsad k liye ek price py transaction kiya jata hy For example agar kisi company ko lagta hy k wo in the future mn ek maal khareedy ga to wo is cheez ko lock karne k liye ek futures contract sign kar leti hy Es tarah wo future mn price increasy hony ki sorat mn bhi pehly sy hi is maal ko kharidna ki guarantee kar leti hy.

No.2
Options: Is tareeqe mn ek taraf ko kisi assyt k liye payment karna hota hy jis sy unhyn future mn kisi specific date tak us assyt ko kharidny ka option mil jata hy Agar unhyn wo assyt khareedna hy to wo option istemal kar k us assyt ko kharid skty hyn agar nahi khareedna hy to unhyn koi nuqsaan nahi hota

No.3
Swaps: Is tareeqy mn do parties apny cash flow streams ko exchange kar rahi hoti hyn For example ek party apny fixed interest payments ko dusri party k variable interest payments sy swap kar leti hy Is tareeqy mn parties ko apni interest rate risk sy nijat mil jati hy in tamam strategies ka istemal is bat ko samjhty howey kia jata hy k agar kisi investment mn nuqsaan ho to us nuqsaan ko kisi or investment sy cover kiya ja skta hy jis tarah hedging investors k liye ek boht paidar or best tarika hy jis sy wo apny financial risk ko kam kar sakty hyn


SPREAD HEDGING:

Index ki jagah mn , qeematon mn aitdaal pasand kami kaafi aam aur intehy ghyr mutawaqqa hy. is shobay par tawajah markooz karne walay sarmaya karon ko ziyada shadeed logon ki nisbat motadil kami sy ziyada tashweesh la-haq ho sakti hy. Un sooraton mn, ekreechh poat spread ekmushtarqa beijing hikmat e amli hy. Is qisam ke phelao mn, Index sarmaya car ekesa poat kharidata hy jis ki strike qeemat ziyada hoti hy. is ke baad, woh kam strike price ke sath ekpoat bichti hy lekin wohi khatam honay ki tareekh. Is baat par munhasir hy ke index kis terhan bartao karta hy, is terhan sarmaya car ke paas qeemat ka tahaffuz do qeematon ( minus laagat ) ke darmiyan farq ke barabar hota hy. agarchay yeh aitdaal pasand tahaffuz ka imkaan hy, lekin yeh aksar index mn ekmukhtasir kami ko poora karne ke liye kaafi hota hy.