Comments on: what instruments do you prefer for hedging currency risk? http://www.myylt.com/2010/01/29/what-instruments-do-you-prefer-for-hedging-currency-risk/ Discussion of Forex Trading and Currency Trading Wed, 23 May 2012 15:17:44 +0000 http://wordpress.org/?v=2.3.3 By: b2fnow http://www.myylt.com/2010/01/29/what-instruments-do-you-prefer-for-hedging-currency-risk/#comment-21998 b2fnow Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/01/29/what-instruments-do-you-prefer-for-hedging-currency-risk/#comment-21998 Depends on the situation. If it's for a business with overseas currency exposure, it might be a currency swap or a dual currency deposit or a currency overlay. For the individual you can buy any stronger currency as a hedge through Forex, or you can trade the Dollar Index futures, but that's a huge contract, hedging a lot of USD's. All currencies are commodities and can be traded as such through a futures broker. Depends on the situation. If it’s for a business with overseas currency exposure, it might be a currency swap or a dual currency deposit or a currency overlay.

For the individual you can buy any stronger currency as a hedge through Forex, or you can trade the Dollar Index futures, but that’s a huge contract, hedging a lot of USD’s. All currencies are commodities and can be traded as such through a futures broker.

]]> By: Michael http://www.myylt.com/2010/01/29/what-instruments-do-you-prefer-for-hedging-currency-risk/#comment-21999 Michael Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/01/29/what-instruments-do-you-prefer-for-hedging-currency-risk/#comment-21999 You could try currency ETFs and the options available on these. They are easily available in standard brokerage accounts. You could try currency ETFs and the options available on these. They are easily available in standard brokerage accounts.

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