U
uktous
Member
hi,
Suppose I am an UK investor and have to pay $1000 US dollar in a future date.
And the current exchange rate of £/$ is 2:1,
how can I hedge the currency risk by using forward?
Since I worry about £/$ fall, should I “short a pound current forward” , so that I could make a gain in the cash market as pound deprecate?
Or, I should "long a dollar currency forward”, so that I could make a gain as dollar appreciated?
Suppose I am an UK investor and have to pay $1000 US dollar in a future date.
And the current exchange rate of £/$ is 2:1,
how can I hedge the currency risk by using forward?
Since I worry about £/$ fall, should I “short a pound current forward” , so that I could make a gain in the cash market as pound deprecate?
Or, I should "long a dollar currency forward”, so that I could make a gain as dollar appreciated?