Tag Archives : hedges

Hedging In Forex Markets

Hedging In Forex Markets

Forex hedging is tool used to reduce the risk in trading. While using this strategy, traders should keep certain points in their mind. For example, they should know which currency pair will protect which type of risk, hedging comes at a price, hedging does not make money itself, etc.

What is Covered Interest Arbitrage?

What is Covered Interest Arbitrage?

Covered interest arbitrage is the name given to an investment strategy. In this strategy an investor buys a financial instrument that is denominated in a foreign currency, and by selling a forward contract in the amount of the proceeds…

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