标题: Cross hedge vs Proxy hedge [打印本页] 作者: Wendy01 时间: 2011-7-11 19:31 标题: Cross hedge vs Proxy hedge
What's your thought process on this?
I always get confused
Tks作者: liangfeng 时间: 2011-7-11 19:31
Please refer to schewser practice exam volume 2 p238. the two triangles, the best explanation I have seen.作者: bpdulog 时间: 2011-7-11 19:31
Proxy is you use a currency similar to the foreign currency and cross hedge you use the foreign currency with a 3rd currency.作者: infinitybenzo 时间: 2011-7-11 19:31
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.
