Differentiate Between Hedging and Speculating

question 32

Short Answer

Differentiate between hedging and speculating.

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Definitions:

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or to the order of a specific person or to the bearer.

Trade Practice

Trade practice involves the customary ways in which trade is conducted within a particular industry, including standards of conduct, competition, and fair dealing.

Claim in Recoupment

A legal claim made in defense to a counterclaim, aiming to offset or reduce the amount of damages sought by the original claimant.

Personal Defense

Legal arguments or claims that an individual can use to avoid enforcement of a contract or demand based on issues personal to him or her.