What is a 'hedge fund'? Definition & meaning

More terms

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Withholding Tax

A tax deduction made at the source of the payment.

Limit order

Learn what a limit order is and how to use it to make the most of your portfolio.

Exchange-Traded Fund (ETF)

A collection of investments, pooled into a single fund that can be bought and sold on a stock exchange.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

American Depository Receipts (ADRs)

Tradeable assets that let Americans invest in overseas stocks using US laws and dollars.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Synthetic ETFs

An ETF that that reproduces the return of an index through the use of swaps.

UK Treasury bill

A debt instrument issued by the UK government with a maturity of less than one year.

Hedge Fund