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Please refer to schewser practice exam volume 2 p238. the two triangles, the best explanation I have seen.

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Proxy is you use a currency similar to the foreign currency and cross hedge you use the foreign currency with a 3rd currency.

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Proxy - attempt to eliminate all currency risk using a proxy since contracts on the original currency are not actively traded.

Cross - different in the currency world, you are trading one exposure for another, presumably based on manager insight.

NO EXCUSES

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