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submitted 2 days ago by chobeat@lemmy.ml to c/technology@lemmy.world
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[-] suigenerix@lemmy.world 1 points 1 day ago* (last edited 1 day ago)

Those are reasons why loses aren't as big of a concern for rich people. Not why hedges are only for rich people.

The cost of a hedge is proportional to the assets being protected. If someone has say a $10,000 portfolio of stocks, and they think the market will crash in the next month or two, they could buy a protective option hedge for around $100. And if someone has a portfolio of $300 million, they could hedge for ~$3 million. Wealth is irrelevant.

Also hedges aren't risky. They reduce risk. They're insurance.

this post was submitted on 21 Jul 2026
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