Definition
The Rio hedge is a tongue-in-cheek term used by traders who face liquidity issues or capital restraints but still put on a risky trade. If the trade goes badly, the trader will execute the Rio hedge, that is, a plane ticket to a tropical location such as Rio de Janeiro, to escape financial responsibilities. Essentially, the Rio hedge is a form of gallows humor. Key Takeaways A Rio hedge is when a
In Panel Profits
In the Panel Profits market platform, Rio Hedge applies standard equities & market mechanics principles to comic assets and physical collections. Trading volume and liquidity spreads reflect secondary market dealer and auction transactions.
Common mistakes
Do not infer unobserved prices.