Hedging in forex trading can be done in different ways. One common hedging strategy is using correlated currency pairs. Traders may enter into positions on two currency pairs that have a strong correlation, meaning they tend to move in the same direction. By hedging with correlated pairs, trader...
‘Transaction vs Economic Exposure’ is equivalent to comparing short-term vs. long-term impact on cash flow changes due to forex fluctuations in the market. Transaction…Read Article Economic Exposure Meaning of Economic ExposureEconomic exposure, also known as operating exposure (a type of foreign...
Now, you can use one account to trade the markets that adhere to the netting system and allow having only one position per instrument, and use another account in the same platform to trade Forex and apply hedging. This article describes the netting and hedging systems in details, as well as...
forex forwards in the yuan were settled on a physical basis, meaning there was an actual delivery of the underlying currencies upon maturity of the contract. The new policy granted market players the flexibility to pay the net basis and roll over the forwards. ...