De-hedge refers to the process of taking off positions that were put in place as a hedge. : De-hedging refers to the process of closing out positions that were originally put in place to act as a hedge in a trade or portfolio. A hedge is a risk-reducing position taken to limit the potential losses in an existing position or investment. The de-hedging process may occur all at once, where the full hedge is removed in a single trade; or incrementally, leaving the position partially hedged.