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limonDancer


Total Posts: 1
Joined: Oct 2018
 
Posted: 2019-01-29 22:08
I know it‘s a very basic question to be asking here. Basically I set aside some savings in ETFs and was wondering about cheap, low-effort hedges for some of the associated currency risk that can be implemented on a retail brokerage account (my home currency is EUR and I want to hedge against USD, so nothing exotic).

rickyvic


Total Posts: 186
Joined: Jul 2013
 
Posted: 2019-02-02 18:13
This should be in basics.
You can hedge your currency with the nearby futures which you need to be rolling about every 3 months.
Alternatively rolling spot fx but they roll it at spot next / tom next swap every day and charge you a lot more than bidask so not very economical, but you don't need to roll like the futures contracts.
Otherwise you buy a futures option and roll it the same way, it will cost you more but you only pay the premium dont need to post margin daily.




"amicus Plato sed magis amica Veritas"
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