A hedging strategy in which an investor sells short a convertible security on an underlying security already owned. This means that the underlying security is held long and the convertible is sold short, which is the opposite of a normal hedge. The investor profits when the underlying security loses value, which reduces the premium on the convertible security. A reverse hedge is a type of convertible arbitrage. also called Chinese hedge.
Related information about reverse hedge:
- What is reverse hedge? definition and meaning
Definition of reverse hedge: A hedging strategy in which an investor sells short a convertible security on an underlying security already owned. This means that ...
- Reverse Hedge - Financial Dictionary - The Free Dictionary
Applies mainly to convertible securities. Trading hedge in which one is short the convertible and long the underlying common, in the hope that the convertible's ...
- Chinese Hedge Definition | Investopedia
The trader will profit when the underlying asset depreciates, diminishing the premium on the convertible security. Also known as a "reverse hedge". Investopedia ...
- reverse hedge - Invest Definition
reverse hedge definition: See Chinese hedge.... ... reverse hedge investment & finance definition. See Chinese hedge. Webster's New World Finance and ...
- Reverse Hedge - Answers
also called a Chinese hedge, owning a common stock and selling short a convertible with the same underlying common stock in the hope that the convertibles.
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1 day ago ... Porsche SE is seeking to reverse a ruling that the carmaker must face a lawsuit by hedge funds accusing it of hiding a plan to corner the market ...
- Convertible Arbitrage Strategy - AIMA Canada
“reverse hedge” the trade if the convertible security is overvalued (i.e., sell the convertible bond short and buy the stock), which can be costly if there is negative ...
- Reverse Hedge Definition - What is a Reverse Hedge - Reverse ...
Reverse equity hedge, Reverse hedging, Reverse Hedge.