Final answer:
Hedging can be achieved by trading in the forward market. It is a financial strategy used to protect against potential losses by taking an offsetting position in a related security.
Step-by-step explanation:
Hedging can be achieved by trading in the forward market. Hedging is a financial strategy used to protect against potential losses by taking an offsetting position in a related security. In the case of currency risk, a forward contract can be used to lock in a specific exchange rate for a future date, reducing uncertainty and protecting against adverse exchange rate movements.