Caricature of a tramp. A vagrant or a vagabond is a person, often in poverty, who wanders from place to place without a home or regular employment or income. Other synonyms include tramp, hobo, and drifter.
Hedge Ratio. 1. A ratio of the value of the proportion of a position that is hedged to the value of the entire position. A hedge ratio shows how exposed an investment is to risk. For example, if a hedge ratio is .65, then 65% of the investment is protected from risk, while 35% remains exposed. 2. A ratio of the value of a futures contract to the value of the underlying asset. This is used to identify and minimize risk in the contract.
DEFINITION of 'Hedge'. Making an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.aking an investment to reduce the risk of adverse price movements in an asset. Normally, a hedge consists of taking an offsetting position in a related security, such as a futures contract.