Hedging risks with futures. Not only major companies but also traders and investors should think about it. Hedging is insurance, which is available to all. Read in the article: What is hedging? Advantages of hedging. Difference between diversification and hedging with futures. Hedging with futures. Conclusions. What to do in practice?
What does hedging currency risks mean? In simple words, this is when a financial market participant performs an operation to insure himself against a possible negative influence, which can be exerted on his other operations by the currency exchange rate change. For example, when a US investor buys stock of an American company, denominated in […]