Euro FX Hedger
A hedger in the euro
market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual euro. Hedging
is possible because the euro cash prices and euro futures prices tend to move in the same direction. However, the difference
between the cash price and the futures price may narrow or widen. The change in the difference between the cash price and
the futures price is called basis risk. Because of the changing basis no hedge can be perfect.
Where can you hedge the euro? The
euro can be hedged on the Chicago Mercantile Exchange (CME). The CME offers a competitive and transparent market place to
engage in efficient hedging strategies. If you are interested in hedging euro please contact us. One of our experienced Euro traders will be happy to give you a call to discuss hedging strategies with you.