Hawk / Hawkish 

An economic policy advisor who favours relatively higher interest rates to keep inflation under control or curb rapid economic growth. 

Hedge / Hedging 

A way of reducing the risk of losses that may occur if interest rates, share prices or foreign exchange rates move in the wrong direction. This usually involves the use of CFD or futures contracts. 

In trading, hedging also refers to simultaneously buying and selling the same instrument. 

Holding Cost (Swap) 

The cost of holding a position during a certain time (usually overnight). 


High Water Mark  

The highest peak in value than an investment fund or account has reached. The high-water mark ensures the manager does not get compensated large sums for poor performance.  

Hurdle Rate 

In hedge funds, the hurdle rate refers to the rate of return that the fund manager must beat before collecting incentive fees.