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

cross, difference, between

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

CFA Candidates

Rank: 2

UID: 223455
帖子: 334
主题: 12
注册时间: 2011-7-11
最后登录: 2014-8-7

2^#

发表于 2013-4-3 03:45 | 只看该作者

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.

TOP

返回列表

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

[收藏此主题] [关注此主题的新回复]

[通过 QQ、MSN 分享给朋友]