Current location - Trademark Inquiry Complete Network - Futures platform - Foreign exchange hedging between two currencies? How to operate
Foreign exchange hedging between two currencies? How to operate
1. Currency hedging related to foreign exchange transactions.

For example, to hedge before the euro and the pound, you can buy/sell the "euro/dollar" contract and then sell/buy the "pound/dollar" contract with the same value.

2. Exchange rate risk hedging

Internationally, futures contract hedging is mainly used to eliminate the influence of holding other countries' currencies due to exchange rate fluctuations.

For example, your local currency is euro, which is mainly the currency you use to pay employees' salaries or buy raw materials. Due to foreign trade, you will receive a payment in US dollars (value 1 ten thousand) in the future. Then if you are worried about the depreciation of the dollar, you can short the dollar/euro contract with the same value, or make more euro/dollar contracts with the same value.