Forex Hedging Products

Are you looking for a flexible alternative for currency hedging?

Do you conduct foreign currency transactions? Want to minimize the impact of currency fluctuations on your profits? There are many reasons for implementing a currency hedging strategy, and using carry spot trades on a forex trading platform is aflexible way to start.

When dealing with major banks, you can ask for a currency option, which gives the holder the right, but not the obligation, to sell or buy a face amount of currency at a set price, on or before a given date. Unlike forward contracts, you can sell options in a liquid secondary market, before their expiration date. Further, currency options are useful when hedging future foreign currency transactions that are uncertain, because you are not obliged to ever convert or exercise them. However, these advantages come at a cost. They have to be purchased—and there is a cost involved and premiums to pay.

Before you commit to a hedging strategy, consider carry spot trades on a forex trading platform such as OANDA fxTrade, which give the benefit of competitive spot forex rates, with no specified delivery date. You can close them at any time on any day (within the same day, or next week or even next year).