THE HEDGING INSTRUMENTS IN THE STOCK MARKET

This article gives an overview of the hedging instruments in the stock market. In the introduction the definition of hedging, its goal and brief description of the types of risks are highlighted. First chapter covers stock market hedging tools, as well as their relevant examples, second one — over-the-counter instruments. Based on this information, it is possible to form a general understanding of how such instruments as Futures, Options, Forwards and Swaps function and clarify the details about their application in practice.