What Is Cure Wing
Cure wing is a term used in finance to describe a hedging or risk management structure designed to limit downside exposure while preserving upside potential. It often involves combining offsetting positions or instruments to reduce volatility and cost.
How Cure Wing Works
A typical cure wing setup pairs a core investment with a protective layer, such as options or futures, that caps losses within a defined range. This allows investors to maintain exposure to an asset while setting clear boundaries on potential drawdowns.
Benefits and Risks of Cure Wing
The main benefit is lower cost compared to full protection, since the strategy accepts some limited risk in exchange for cheaper premiums or margin requirements. However, it does not eliminate loss entirely, and performance depends on market conditions and the specific instruments used. For a broader overview of hedging strategies, see Investopedia.
