🔵 Hedge Meaning - Hedge One's Bets Examples - Hedge Fund Defined - Hedge Fund Hedge Your Bets Hedge
iswearenglish
https://www.youtube.com/watch?v=ofoOOfC4g-0

Transkript (automatisch erstellt)

0:00 hi there students hedge a hedge a countable noun to hedge as a verb we've got an idiom to hedge your bets
0:15 and then we use this word in finance as well for example a hedge fund okay so I'm sure you all know the meaning of hedge as
0:29 um a plant a small tree or bushes planted in a row especially along the edge of a garden or along the edge of a field yeah so a privet hedge yeah and
0:43 that's the easy easy answer to it in language when we hedge we use phrases and words to make what we say less strong we use it as a way to avoid
1:01 committing ourselves so politicians are experts in hedging when they answer a question so are you coming to the party
1:14 well I may be able to come this is hedging I hadn't said I want to come I've said I may be able
1:26 it's possible that I will have the ability it doesn't say I want to come it doesn't say I'm coming yeah and this is a typical answer of hedging uh when it
1:40 linguistically um is this blue or red well many people would say it's a bluish color but I'm
1:52 sure others would say it's a reddish color I'm hedging I haven't answered the question at all and this is the idea of linguistic hedging it's giving a
2:04 non-committal answer or an ambiguous answer that can be taken in both ways so you don't commit yourself to either thing
2:15 yeah um so did you crash my car well your car's outside and uh it goes perfectly well yes but did you crash it
2:28 yeah yes it's outside and yes it works but yes I did crash it and that's what where it stops be uh being a hedge so to hedge is to
2:41 um avoid saying something uh directly um for example also with when you hedge you use words to avoid exact commitment
2:56 uh does it work well yes it often works well it often works even without yes it doesn't mean it does work and it does work now okay so you're avoiding the
3:10 answer then we have um to hedge your bets now we're getting more into the financial
3:20 um Arena if you hedge your bets you um avoid your risk of being wrong so for example in if there's a political uh uh a political election in a country and
3:38 there are two parties maybe a big company donates money to both sides like that they are hedging their bets yeah whoever
3:50 wins is going to be happy with them because they gave them money and this is the idea of to hedge your bets [Music]
4:00 um thinking about betting for example a horse race if you want to be certain that you are
4:11 going to uh choose the winning horse the way to hedge your bets is to bet on all of the horses yeah you better put a bet on each every single one and then you
4:24 guarantee you are going to win so to hedge this is talking about the um control of the limit or limiting risk limiting the risk of losing
4:40 so let's go now into a bit more into Finance for example if you own a gold mine well probably you owe the bank a lot of money
4:54 and if the price of gold is uh five hundred dollars an ounce today um you know that you can pay your debts and make a profit on uh on your
5:10 operation at five hundred dollars but the problem is the price of gold goes up and down and if the price of gold goes to 250 an
5:21 ounce for some reason um then you'll probably go bankrupt so what gold mines tend to do is they sell all of their production in the
5:33 future so the price of gold today is 500. I will sell you a ton of gold one year from now at 500 an ounce
5:47 um that means I can guarantee that I'm going to make a profit if the price of gold goes up I don't make any extra profit
5:57 yeah but if the price of gold goes down I don't go bankrupt so this is the idea of hedging is to put limits on the risk and this is part of the origin you put a
6:10 hedge round um the uh your investment your money so that there are uh you can't lose more than a certain amount okay and this this
6:25 is the idea of um to hedge um is to uh if you produce something is to sell that product at a price in the
6:36 future and like that you guarantee the price you're going to get and you reduce uncertainty now we have a hedge fund now I think a
6:49 hedge fund is is slightly different in theory a hedge fund is supposed to be hedged from risk there are it limits the risk but generally a hedge fund it's
7:04 money that people invest in lots of people and there is a hedge fund manager like George Soros who uses this money um to invest with unconventional
7:19 um strategies he does different things with it by selling short by using leverage by buying derivatives um by buying that gold contract I
7:33 mentioned before at uh 500 a year from now so hedge funds these are alternative Investments that um hope to make more money
7:47 um because they are there are many different ways that they can invest they're much much less Limited um they're supposed to limit risk but I
7:58 re I don't actually think they do so a hedge a line of small trees or small bushes to hedge to not answer directly yeah I
8:12 asked him yes or no but he hedged he refused to say yes or no he said maybe and sometimes and it's possible and could but he used all sorts of words to
8:27 hedge his answer without answering me directly to hedge to support various different sides in a situation you hedge your bets
8:40 yeah if you support um various different uh um people or outcomes then you have a much
8:52 better likelihood of being successful or you reduce the risk of failing and then to hedge financially to effectively to guarantee your safety to reduce your
9:09 risk in the future you could you you could use a financial hedge to guarantee a profit or to guarantee that you your loss is no bigger than
9:23 something than a defined amount and then you have this hedge fund which is a group of people who invest uh in this fund and then this money is invested in
9:38 different not non um traditional ways so to hedge formality he hedged he didn't answer me
9:52 I think six informality um I think maybe informally he gave me an evasive answer using a semi-formal conversation semi-formal or formal
10:02 writing to hedge your bets I think five informality used just about anywhere um Financial hedging um
10:15 it's a business word six informality semi-formal conversation and above and then a hedge fund no it's pure Financial it is what it is
10:28 um six informality but I would say you could use anywhere and then the origin of the word hedge
10:36 well this comes from proto-germanic hagjo yeah um a hedge from proto-indo-european
10:47 an enclosure so something that goes around so enough if you enjoyed the video give it a rating subscribe to my channel and I will see you soon
10:58 bye for now a hedge to hedge to hedge your bets a hedge fund