# Hedging

*Derivatives & Options — Finicade finance glossary*

Taking one position to offset the risk of another, like insurance you build yourself. An exporter expecting dollars can sell dollar futures today; whatever the exchange rate does, the combined outcome is locked. Hedging gives up upside to remove downside.

**Related terms:** [Derivative](https://finicade.com/glossary/derivative), [Futures Contract](https://finicade.com/glossary/futures-contract), [Delta Hedging](https://finicade.com/glossary/delta-hedging), [Put Option](https://finicade.com/glossary/put-option)

**Taught in:** Charter Climb — Derivatives: Forwards & Futures

Source: https://finicade.com/glossary/hedging