A hedge is an investment made to offset the risk incurred by entering another investment. Essentially you are setting up a bet on both sides so that one offsets the other and you can end up winning either way.
Think of it as a form of insurance.
Options are frequently used in hedging.
For example, you can speculate [...]
Investing in stocks is not like playing a game of blind man’s buff; neither is it a matter of trial and error. If you leave your earnings to chance or luck, you are more likely to lose than gain.
If you want to make money from stocks, you must draw a carefully considered plan. You [...]
An option can be simply defined as a contract between a seller and the buyer that allows the right to purchase or sell shares of stock with a specified timeframe. A solid education of the stock market is crucial for success in the options trading arena. After that, the main focus of your options trading [...]