← All Glossary Haircut The difference between the market value of an asset used as collateral and the amount a lender is willing to lend against it, representing a safety margin. Hedge An investment position intended to offset potential losses in another position by taking an opposite or counterbalancing exposure, reducing overall risk. Hedge Fund An alternative investment partnership employing diverse strategies — long/short, arbitrage, leverage — to generate returns regardless of market direction. HELOC (Home Equity Line of Credit) A revolving credit line secured by a home's equity, allowing borrowers to draw funds as needed up to a limit during a draw period. Historical Volatility A statistical measure of an asset's price dispersion over a past period, typically expressed as annualized standard deviation of returns. Holding Period Return The total return earned from holding an investment over a specific period, including income and capital appreciation, expressed as a percentage. HSA (Health Savings Account) A tax-advantaged account available to those with high-deductible health plans, offering triple tax benefits — contributions are deductible, growth is tax-free, and withdrawals for medical expenses are tax-free.
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