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How to Properly Hedge Your Portfolio and Why It's Important?

Hedging a portfolio refers to the process of protecting against potential losses in the value of an investment. It is a risk management strategy that can help investors to mitigate the effects of market volatility and reduce the overall risk of their portfolio. There are several different ways to hedge a portfolio, and it is important to carefully consider your options before deciding on the best approach. Here are some tips on how to properly hedge a portfolio: