How Do You Hedge Foreign Currency? The primary methods of hedging currency trades are spot contracts, foreign currency options and currency futures. Spot contracts are the run-of-the-mill trades made by retail forex traders. Because spot contracts have a very short-term delivery date (two days), they are not the most effective currency hedging vehicle. How do
Which Of The Following Is A Difference Between A Currency Futures Contract And A Forward Contract? 17) The major difference between currency futures and forward contracts is that futures contracts are standardized for ease of trading on an exchange market whereas forward contracts are specialized and tailored to meet the needs of clients. What is
Why Should A Person Invest In Currency Futures? An investor with good judgment can make quick money in futures because essentially they are trading with 10 times as much exposure than with normal stocks. Also, prices in the future markets tend to move faster than in the cash or spot markets. When should you buy