Definition

Describing a situation or investment that is not protected against potential losses or risks.

Example

The investor took a significant risk by keeping his portfolio unhedged.

Conversation

I was reading about investment strategies, and I came across the term unhedged positions.

Oh really? What does that mean exactly?

It means the investments aren't protected against losses, so they're pretty risky.

That makes sense — I guess it's better to hedge your bets in that case!

Synonyms & Antonyms

Root Explanation

Unhedged → It is formed from "un-" (meaning not) and "hedged" (from the verb "hedge", which comes from Old English "hecg", meaning a fence or boundary). The word "unhedged" means not protected or not enclosed by a boundary, often used in financial contexts to describe investments that are not safeguarded against risk.

Memory Tip

Think of 'not' ('un-') being applied to something that is 'fenced in' or 'protected' ('hedged'). This helps you remember that 'unhedged' means something that is not protected or secured.

Visually Confused Words