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Japanese Yen

Japanese Yen Hedger

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