To hedge means to protect yourself against loss or risk by taking a balancing action. When farmers hedge against bad weather, they might buy insurance or plant different crops in different fields, so if one fails, they still have others. When investors hedge their bets in the stock market, they make offsetting investments so that if one loses money, another might gain.

Just as a hedge (a row of dense bushes) shields plants from wind and wandering animals, hedging in general means setting up protection against things going wrong.

In conversation, people also hedge when they avoid giving a direct answer. If someone asks whether you liked a movie and you say, “Well, it had some interesting parts,” you're hedging because you don't want to admit you found it boring. Teachers might notice students hedging when they're not quite sure of an answer: “I think maybe it's possibly around 42?” A straightforward “It's 42” shows more confidence.

A hedge fund is an investment company that uses complex strategies to make money while hedging against market risks. The phrase hedge your bets means to protect yourself by keeping your options open, like a student applying to several colleges instead of just one.