Glossary of Investment Terms: H
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A currency whose value is expected to remain stable or increase in terms of other currencies.
Head and Shoulders
A pattern in price trends which chartist consider indicates a price trend reversal. The price has risen for some time, at the peak of the left shoulder, profit taking has caused the price to drop or level. The price then rises steeply again to the head before more profit taking causes the the price to drop to around the same level as the shoulder. A further modest rise or level will indicate a that a further major fall is imminent. The breach of the neckline is the indication to sell.
Hedging
A strategy used to offset market risk, whereby one position protects another.
Hedge Ratio
The number of futures or options required to hedge a given exposure in the cash market.
"Hit the bid"
Acceptance of purchasing at the offer or selling at the bid.