Term	Book	Chapter	Definition
Hedging	CFA Level 1 Exam	Chapter 9: Derivatives	A strategy used to offset or reduce the risk of price movements in an asset by taking an opposite position in a derivative.
Hedging	Corporate Finance	Chapter 6: Risk and Return	The practice of using financial instruments such as derivatives to offset potential losses. For example, a company might use futures contracts to lock in prices for raw materials.
Hedging	International Finance	Chapter 7: Managing Exchange Rate Risk	A strategy used to minimize or eliminate the adverse effects of exchange rate fluctuations.
Hedging	Securities Industry Essentials (SIE) Exam	Chapter 9: Investment Returns and Risk Factors	Using derivatives such as options or futures contracts to reduce exposure to potential losses.