A position established by going short a market in order to protect a long position in an asset from a decline in the market price for that asset. A European firm with a long Exposure to EUR/USD as a result of an forthcoming acquisition of a U.S. company could enter into a short hedge by selling a EUR/USD forex forward contract to protect against a fall in the EUR/USD exchange rate. also called selling hedge.
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Insider Trading Sanctions Act of 1984
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