What's the purpose of hedging a stock or your portfolio?

“What’s the purpose of hedging a stock or hedging your portfolio? First, let’s take a look at what hedging really means. In the stock market, when you hedge a stock, what you are doing is limiting or reducing your risk. Because as you know, investing in the stock market is all about managing your risks and the trades and investments you have on hand.” —Sasha Evdakov: Tradersfly

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