Insurance For Hedging 3816762268780510832-blid-2201664023623883503

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Hedging and insurance are two risk management techniques. Hedging requires the entry of counter party in all the hedging derivatives, whereas in insurance you need an insurer. Hedging requires that you give the potential prospects of future gains where as insurance does not require you to give up the prospects of future gains, insurance actually minimizes the risks of losses. There is no concept that states insurance for hedging; however, insurance can be used as one of the derivatives of hedging.