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A reserve currency (or anchor currency) is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves. Gold Trading. Since the beginning of time gold, silver, copper, platinum and palladium have been renowned as valuable, the reason for their high value is due to their. A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. In simple language, a hedge is used to.