British Pound Hedger
A hedger in the British
pound market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual British
pound. Hedging is possible because the British pound cash prices and British pound 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.
can you hedge the British pound? The British pound 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 British
pound please contact us. One of our experienced British pound traders will be happy to give you a call to discuss hedging strategies with you.