Hedging in Forex: How to Hedge Currency Risk
Isn't that like playing both sides of a sports game and hoping for a tie? But in the forex world, sometimes playing both sides can be a smart way to manage your risk. Forex hedging provides a safety net; however, like any safety net, risks are involved. If the option is purchased, the dollar value will be fixed at the current level. And even if the company has to pay a premium of several thousand dollars, then such losses will...