A position that limits the potential loss that would result from a decline in a security or market. For example, the purchase of a put option on a stock that is already owned offers downside protection.
Related information about downside protection:
- Downside Protection Definition | Investopedia
Downside protection often involves the purchase of an option to hedge a long position. Other methods of downside protection include using stop losses or ...
- What is downside protection? definition and meaning
Definition of downside protection: A position that limits the potential loss that would result from a decline in a security or market. For example, the purchase of a ...
- Downside Protection - Financial Dictionary - The Free Dictionary
Generally used in connection with covered call writing, this is the cushion against loss, in case of a price decline by the underlying security, that is afforded by the ...
- Downside Protection Definition - What is Downside Protection?
What is Downside Protection? Find out right now with a helpful definition and links related to Downside Protection.
- 3 ETF Types For Downside Protection | ETF Database
Jun 15, 2012 ... Besides the obvious direct benefits, downside protection strategies can help us from falling into “behavioral traps” that can significantly erode ...
- Access private company equity with downside protection | VentureBeat
Nov 13, 2012 ... Investors seeking the high return potential of private growth companies have historically had to shoulder a significant degree of risk when ...
- Downside Protection: The Price Of Peace Of Mind - Forbes
Oct 17, 2011 ... Like a sick person fumbling for a magic pill in the medicine cabinet, investors are casting about for strategies to cope with the recent uptick in ...
- Downside Protection Has Downsides - WSJ.com
Sep 4, 2010 ... Fixed-indexed insurance products, commonly called equity-indexed annuities, offer the promise of protection on the downside combined with a ...