Static hedge: related pages
Hedge
A financial strategy that reduces the risks from one security or other investment by buying or selling others.
Market neutral
A market neutral portfolio is one that is fully hedged against the impact of market movements.
Arbitrage
Making a gain through trading securities without committing or risking money.
Put-call parity
A relationship between the price of European call and put options on the same underlying, the underlying security, and the risk free rate.
Futures
A future is a contract to buy an underlying security or commodity at a fixed price at a future date.
Contract for difference (CFD)
An abbreviation of contract for difference. An agreement to pay an amount based on the change in some underlying number, not necessarily a security.
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