Hedging Currency Exposure efficient, currency, through, needed

ajpheif16

If you needed to hedge currency exposure, would it more efficient to do it through futures or through forex?

Rasec

It's usually hedged with forward contracts.

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NakedPuts

Futures are easiest if you have a large account and no real ability to negotiate OTC contracts.

Forwards have the advantage of not requiring margin, but you do require good counterparties and the ability to contact them.

Smaller accounts or atypical currency pairs generally require direct forex transactions or an ETF that tracks the currency.