Hedging means protecting an investment from long-term changes in the market. The various hedging strategies, taken by both private and corporate traders, yield good profits at a minimum risk by neutralizing the market's volatility. Companies, for example, usually perform hedging, when they purchase a product from a foreign company, and the payment for it will only be transferred at a later stage. These companies use various kinds of hedging techniques in order to maintain the value of the currency, since a rise means loss.