Trending FX Hedging Discussions

Which is the most commonly used method of hedging?‎

What is the basic form of hedging currency risk?‎

What is Hedging? Give at least 1 Example. ‎

Hi!! Have anyone engage in currency hedging in Saudi Arabia? Especially with Euro, are those structure proved success for businesses?‎

Further, are there any structures for commodities to be hedged or for arbitrage purposes? and they are in compliance with Islamic principles.‎

 

Answer added by  Frank Mwansa, ACCOUNTING LECTURER, FREELANCER
8 years ago

Forward exchange contract is the most used method for hedging.

 

Answer added by  SHAHZAD Yaqoob, SENIOR ACCOUNTANT, ABDULLAH H AL SHUWAYER
8 years ago

In case of exchanges, if the company is going to receive a large sum of foreign currency from customers it bears the risk that the currency will depreciate and the compan ... See More

 

Answer added by  Nrusingha Charan Panda, Compliance Officer, SMC Comex International DMCC
7 years ago

Hedging is all about to minimise the risk,for example an oil export company knows that they will give delivery 200 barrel of crudeoil to India after 2 month and the price ... See More

 

Answer added by  Deleted user
7 years ago

Hedging is buying insurance for your position in your portfolio. It is taking the opposite position to safeguard and book your downside risk knowing that it doesn't ... See More

 

Answer added by  Ramzi Bibi, Head of Treasury and Investment, Arabia insurance company
8 years ago

Forward Contracts and futures are the most common. They differ as forwards are non standardized and can can have a perfect hedge, while futures are standardized but have ... See More

 

Answer added by  Hitesh Arora, Director - Controller, American Express
8 years ago

Forward Exchange Contract is the common instrument