Comments on: I want know about forex hedging so can any body explain me? our company is importer so want get advantage of? http://www.myylt.com/2010/07/15/i-want-know-about-forex-hedging-so-can-any-body-explain-me-our-company-is-importer-so-want-get-advantage-of/ Discussion of Forex Trading and Currency Trading Thu, 24 May 2012 03:19:56 +0000 http://wordpress.org/?v=2.3.3 By: Tina http://www.myylt.com/2010/07/15/i-want-know-about-forex-hedging-so-can-any-body-explain-me-our-company-is-importer-so-want-get-advantage-of/#comment-26580 Tina Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/07/15/i-want-know-about-forex-hedging-so-can-any-body-explain-me-our-company-is-importer-so-want-get-advantage-of/#comment-26580 You prob have to talk to your broker/banker for a professional suggestion. If you are an importer, you should keep an eyes on the denominated currency of your transaction. If you think the currency is going to raise, you prob have to get a forward contract to protect the forex rate so your company can eliminate accounting loss in forex. Another way is buying option, but option usually require certain premium. the benefit of option is you don't have to buy the currency at the agreeable price if it cost more than future spot rate. Some foreign currency does not have forward contract, then you can do foreign money market. You prob have to talk to your broker/banker for a professional suggestion. If you are an importer, you should keep an eyes on the denominated currency of your transaction. If you think the currency is going to raise, you prob have to get a forward contract to protect the forex rate so your company can eliminate accounting loss in forex. Another way is buying option, but option usually require certain premium. the benefit of option is you don’t have to buy the currency at the agreeable price if it cost more than future spot rate. Some foreign currency does not have forward contract, then you can do foreign money market.

]]> By: freeman http://www.myylt.com/2010/07/15/i-want-know-about-forex-hedging-so-can-any-body-explain-me-our-company-is-importer-so-want-get-advantage-of/#comment-26581 freeman Tue, 30 Nov 1999 00:00:00 +0000 http://www.myylt.com/2010/07/15/i-want-know-about-forex-hedging-so-can-any-body-explain-me-our-company-is-importer-so-want-get-advantage-of/#comment-26581 1.For Hedging in Currencies through Currency futures First you need to open Fx trading account 2.Depending on your import value we identify how many lots needs to be hedged by using optimal hedge 3.An Importer always takes Buy position in futures since his underlying asset is on sell side 4For example value of the contract entered is $100000 and USDINR is at 46.0000 on the said date. If Rupee depreciates you will be exposed higher payables and this can be reduced by entering into forward/futures Hedge. in Futures you should take multiples of $1000 (100*$1000) , For further details contact me on mail at fx@jrg.co.in or on phone: 0484-2796307 (Forex reserach at JRG securities) 1.For Hedging in Currencies through Currency futures First you need to open Fx trading account
2.Depending on your import value we identify how many lots needs to be hedged by using optimal hedge
3.An Importer always takes Buy position in futures since his underlying asset is on sell side
4For example value of the contract entered is $100000
and USDINR is at 46.0000 on the said date.
If Rupee depreciates you will be exposed higher payables and this can be reduced by entering into forward/futures Hedge.

in Futures you should take multiples of $1000 (100*$1000) ,

For further details contact me on mail at fx@jrg.co.in or on phone: 0484-2796307 (Forex reserach at JRG securities)

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