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US Dollar Index Hedger

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U.S. Dollar Index

USD Index Hedger

A hedger in the USD index market is an individual who uses the futures market to offset price risk when intending to sell or buy the actual USD index. Hedging is possible because the USD index cash prices and USD index 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 USD index? USD index can be hedged on the Intercontinental (ICE). The ICE offers a competitive and transparent market place to engage in efficient hedging strategies. If you are interested in hedging USD index please contact us. One of our experienced USD index 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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