Hedge

A hedge has several meanings. Primarily, it's a boundary of bushes or small trees planted closely together. Figuratively, it can refer to a financial strategy to reduce risk by making an investment to offset potential losses. It also signifies avoiding a commitment or giving a vague or evasive answer. Finally, it means to restrict or limit something. Its multifaceted usage makes it a versatile word in both literal and figurative contexts.

Hedge meaning with examples

• The gardener spent the entire afternoon trimming the privet hedge, ensuring its neat, rectangular shape. It was a crucial aspect of the estate's aesthetic, providing both privacy and a defined border. The well-maintained hedge added a touch of formality to the garden.
• To hedge against market volatility, the investor purchased put options. This financial instrument allowed them to limit potential losses if the market declined, thereby managing their risk exposure effectively. Hedging strategies are very important.
• When questioned directly, the politician began to hedge his answer, refusing to commit to a specific course of action. He dodged the topic, offering vague statements. His refusal showcased his reluctance to take a firm position on the contentious issue.
• Regulations were introduced to hedge the use of artificial intelligence in healthcare. This set out parameters, preventing it from being used to make high-stakes decisions without appropriate human oversight and caution. This was done for health and safety.