DEFINITION of 'Super Hedging'
A strategy that hedges positions with a selffinancing trading strategy. In an incomplete market, such as options, the cost of such a strategy may prove too high. The idea of super hedging has been studied by academics, however it's a theoretical ideal and is difficult to implement in the real world.
INVESTOPEDIA EXPLAINS 'Super Hedging'
A hedging transaction limits investment risk of an underlying asset by using options or futures. The options or futures are bought in opposing postions to the underlying asset in order to lock in a certain amount of gain.
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How much variance should an investor have in an indexed fund?
An investor should have as much variance in an indexed fund as he is comfortable with. Variance is the measure of the spread ... Read Full Answer >> 
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