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Euro FX Hedger

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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.

Commodity trading is not suitable for everyone. The risk of loss in trading can be substantial. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Carefully consider the inherent risks of such an investment in light of your financial condition. Past results are not necessarily indicative of future results. Please do your own research before investing in the futures market. This site contains no investment recommendations. The information and opinions contained herein comes from sources believed to be reliable, but are not guaranteed as to accuracy or completeness.

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