Hedging Techniques (On Page 97, Book 3 of Schweser) cross, difference, between

Howd

Hi, all
anyone clarify the difference between “proxy hedge” and ” cross hedge” ?
“proxy hedge” is a kind of ” cross hedge” ?
plane and easy explanation is appreciated!!
thanks in advance!

zephyranalyst

Is this the currency hedge? If so…
proxy - use correlated currency with local currency because you can’t hedge directly. tries to min currency risk.
cross hedge - hedge the local currency but take on active risk buy going into another currency. only tries to min risk of the local currency u want to hedge but takes on currency risk of another currency for profit.