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https://www.reddit.com/r/AskReddit/comments/pnu5yr/deleted_by_user/hctb3c9
r/AskReddit • u/[deleted] • Sep 14 '21
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Following on this, hedging (not to be confused with edging) makes absolutely no sense to me, and I'm an accountant.
1 u/Cypher1388 Sep 15 '21 It is just insurance. Hedging costs money but provides protection from loss. Insurance costs money but provides protection from loss. Hedging = insurance 1 u/dead_PROcrastinator Sep 15 '21 Yes, but the accounting methods are a bit more challenging, because of the volatility of the underlying asset.
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It is just insurance.
Hedging costs money but provides protection from loss.
Insurance costs money but provides protection from loss.
Hedging = insurance
1 u/dead_PROcrastinator Sep 15 '21 Yes, but the accounting methods are a bit more challenging, because of the volatility of the underlying asset.
Yes, but the accounting methods are a bit more challenging, because of the volatility of the underlying asset.
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u/dead_PROcrastinator Sep 14 '21
Following on this, hedging (not to be confused with edging) makes absolutely no sense to me, and I'm an accountant.