Find out how to be comfortable with the investment decisions you make.

Investing involves risk.

Without risk, you can't reasonably expect investments to generate good returns. But that doesn't mean that you have to accept the full amount of risk from a particular investment. Instead, you can use hedging strategies to transfer some of that risk onto speculators who are willing to take it on in the hopes of earning even better returns.

There are many different ways to hedge against investment risk, with some methods applying only to certain types of investments. Nevertheless, what each of these hedging strategies share in common is that they can help you reduce the amount of losses you suffer from adverse outcomes, often with minimal cost. Below, we'll look at some of the instruments you can use for hedging purposes.