Necessarily considered a "hedge" because it can be carried in the same market, but it does not reduce the risk of falling. Hedge requires a cost-benefit analysis since the hedging instruments do not require premiums, or spreads and commissions to be paid. Typically, an investor familiar with the Options will sell a call option to offset the cost of buying a put option. Put guarantees passive protection and the potential for gains, while the call limits the upside, thus "lock in" profit on the security or currency.