Hedgers are individuals or businesses that use financial strategies to protect themselves against potential losses in the market. They often engage in activities like buying or selling derivatives, such as options or futures, to offset risks associated with price fluctuations in commodities, currencies, or stocks. This practice helps them stabilize their financial outcomes and manage uncertainty. For example, a farmer may be a hedger who sells futures contracts for their crops to lock in prices before harvest. This way, they can secure a guaranteed income, regardless of market changes. Hedging is a common strategy in various industries, including agriculture, finance, and energy.