Hedging, in its essence, is a risk management strategy employed in the investment management industry. It refers to a financial action that is taken to provide protection against loss in an investment portfolio. In other words, it involves making investments that offset losses in other investments. Some synonyms for hedging include "mitigating risk," "protecting against uncertainties," "limiting exposure," and "diversifying investments." Investors may also use options contracts or futures contracts to hedge their bets and minimize risk. The importance of hedging cannot be overstated, as it provides a safeguard against market fluctuations and unexpected events. So, whether you call it "hedging" or "risk management," it is a crucial consideration for any serious investor.