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Help! What is the best way to hedge physical EUR exposure?
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Author:  r2997790 [ Sun Jan 27, 2013 11:48 pm ]
Post subject:  Help! What is the best way to hedge physical EUR exposure?

Hi Everyone,

I was wondering if someone could suggest a smart way to hedge EUR currency risk against GBP as the base currency.

Imagine a steady income of 1500 Euros per month... what would be the best way to cover yourself for currency fluctuations if your base currency was GBP?

I guess you could sell 0.2 EURGBP lots on a mini account every month in the Spot FX market, is there another more economical way, perhaps using options or futures (I must confess I don't know much about options or futures).

I see there is a very very modest swop paid on short positions too.


If anyone has any insights they could share I'd appreciate it.

Many thanks!
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