a, forex. Investment bank was scheduled to repatriate some profits earned in Europe it could hedge some of the expected profits through an option. As with options on other types of securities, foreign currency options give the purchaser the right, but not the obligation, to buy or sell the currency pair at a particular exchange rate at some time in the future.
Forex 6 paires Hedge ears
A forex hedge is meant to protect from losses, not to make a profit. The second part d restricts a forex dealer from adjusting prices after an order has been executed. Be sure to research the broker you use before beginning to trade). In fact, regular spot contracts are often why a hedge is needed. 14 Votes 26, whoa. 7 Votes 13, yes, you could say it is profitable. A forex hedge is a transaction implemented to protect an existing or anticipated position from an unwanted move in exchange rates.