Macro-Hedge

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Dictionary Says

Definition of 'Macro-Hedge'

An investment technique used to eliminate the risk of a portfolio of assets. In most cases, this would mean taking a position that offsets the whole portfolio. But this technique is difficult in practice because there is rarely one asset that will offset the risk of a broader portfolio, so applying a macro-hedge most likely requires taking an offsetting position in each individual asset. 
  
Investopedia Says

Investopedia explains 'Macro-Hedge'

Here's an example of a macro-hedge: an index-fund manager believes there will be a loss in the index in the upcoming period. To eliminate the risk of a downward turn in the index, the manager can take a short position in the index fund's futures market that will lock in a price for the index. 

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Related Definitions

  1. Index Fund

    A type of mutual ...
  2. Futures

    A financial ...
  3. Hedge

    Making an ...
  4. Micro-Hedge

    An investment ...
  5. Position

    The amount of a ...
  6. Price Risk

    The risk of a ...
  7. Long (or Long Position)

    1. The buying of ...
  8. Short (or Short Position)

    1. The sale of a ...
  9. Risk

    The chance that ...
  10. Risk Capital

    Investment funds ...

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