Hedging means doing something to mitigate a certain risk.
Insurance mitigates your risk to shell out a lot of money when a certain risk occurs, in life insurance you insures your life.
In EDC, Foreign Exchange Risk is abundant and it is usually captured in the Financial Statement. That is the reason why our Treasury management is hedging our foreign denominated loans. however, the accounting process for hedging gives me headache. That was the reason why I posted help me yesterday. But i took it back coz i don't want to insunuate that I am in need forever, especially now that we're about to finish the runs. Well not finish as in no work to be done, but the pressure is not on me anymore, its now time for the upper management to shake their head a little and work equal to their lucrative salary. hehe! if ever my bosses read this, patay ako. Oh well at least they'll know that they have to increase my salary ASAP! harhar.
What are the risk some people want to mitigate? For some silly men and women, though they often call themselves naughty, they prefer hedging the risk of losing their boy/girlfriend by having two at the same time. That is not allowed, for me at least. Boyfriend or girlfriends cannot be hedged. You enter in a relationship to make it work a lifetime. I repeat "lifetime", not shortime, not halftime, ok? ok? If God takes him/her away from you then that's destiny.
What are the things do you want to hedge?