Overhedging refers to the hedging of a larger amount in a currency than the actual transaction amount.

Name: Overhedging refers to the hedging of a larger amount in a currency than the actual transaction amount.
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Overhedging is a common practice in currency hedging, where the hedging is done for more significant amounts than the actual transaction value. This is usually done to mitigate risks that may arise due to exchange rate fluctuations.

Overhedging Refers to the Hedging of a Larger Amount in a Currency