Currency hedging occurs when businesses agree to buy or sell a specific amount of foreign currency at a predetermined exchange rate on a future date to protect themselves from potential losses due to fluctuating exchange rates.

Hedging

For example, you can use a forward contract if you’re based in Europe but conduct business in the US. This currency hedging example will only come into play if the value of the US dollar drops relative to the Euro (not the other way around).

What is The Hedge

Hedge Meaning Hedge refers to an investment strategy that protects traders against potential losses due to unforeseen price fluctuations...

Start typing and press Enter to search