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Showing 5 of 5 matching terms
Taking an action intended to reduce exposure to a specified risk, sometimes by taking an offsetting position. It can have costs and leave other risks.
Example: An importer worries that a future foreign-currency invoice will cost more in home currency and considers a way to fix its conversion terms.
Keep in mind: A hedge is not a promise of profit or protection from every possible loss.
An accounting arrangement allowing separately identified positions, including opposite directions, subject to the platform and account settings.
Example: A 1,000-unit long and a new 600-unit short may remain two positions rather than one 400-unit long.
Keep in mind: The label does not prove that the combined account has no risk or costs.
A selected high above a previous comparable selected high under the same observation rule.
Example: Invented confirmed highs of 10 then 12 show a higher high.
Keep in mind: One comparison alone does not establish a complete trend or identify a future move.
A selected low above a previous comparable selected low under the same observation rule.
Example: Invented confirmed lows of 7 then 8 show a higher low.
Keep in mind: Keep timeframe and confirmation rules consistent before combining it with higher-high observations.
Seeing a completed event as more obvious or predictable than it was with the information available beforehand.
Example: After a rainy picnic, someone says the weather was obviously going to turn despite their earlier uncertain forecast.
Keep in mind: Preserve the original dated reasoning rather than rewriting it after the outcome.