Can anyone tell me about forex hedging?
回答 (2)
2018-05-03 9:27 pm
If you have to ask you shouldn't be doing it.
2018-05-06 7:48 am
Certainly. You can sell or buy forex spot or forward contracts, or futures contracts, or better still buy or sell futures options or OTC forex options to offset your risk, either in whole or in part. I used to do this hedging currency risks and hedging materials costs.
2018-05-03 9:14 pm
you are a US company so your accounts are based in $s
but your product is made in mexico - so your costs are based in pesos
and your product is sold in canada - so your income is based in C$s
if the value of the peso goes up against the US$ your costs will go up (cos you will have to pay more in $s to get the pesos to pay for your product)
If the value of the C$ against the US$ goes down your income will go down (cos the C$ wont buy as many US$s)
So as an insurance policy to minimise the effects of changes in currency values you "hedge" the US$ against the C$ and peso
(it aint an "insurance policy" as such - its more like a "bet" - you are betting the currencies WILL move in the "wrong" direction
That means that if they change in the "wrong" direction as far as your business is concerned then yes you will lose money in buying/selling your product, but the hedging "bet" will pay out (cos you bet they WOULD move in that direction) and compensate for your losses
How MUCH you "bet" and how far the currency has to move before you "win" is really in the area of "risk management" of your business - cos you have to balance the probabilities of them moving by different amounts, how much your business could lose if they did move by those amounts, against the cost of your "bet"
(e.g not a lot of point paying 1M to bet that the pesos will double in value against the $ and that would cost you say 5mill more in product costs - yes it COULD happen but its VERY unlikely . But it might be worth paying 1M if say a 1% rise would cost you the same amount
THATS where risk management comes in - to determine if an hedging strategy is necessary - and if so determine what is should be)
but your product is made in mexico - so your costs are based in pesos
and your product is sold in canada - so your income is based in C$s
if the value of the peso goes up against the US$ your costs will go up (cos you will have to pay more in $s to get the pesos to pay for your product)
If the value of the C$ against the US$ goes down your income will go down (cos the C$ wont buy as many US$s)
So as an insurance policy to minimise the effects of changes in currency values you "hedge" the US$ against the C$ and peso
(it aint an "insurance policy" as such - its more like a "bet" - you are betting the currencies WILL move in the "wrong" direction
That means that if they change in the "wrong" direction as far as your business is concerned then yes you will lose money in buying/selling your product, but the hedging "bet" will pay out (cos you bet they WOULD move in that direction) and compensate for your losses
How MUCH you "bet" and how far the currency has to move before you "win" is really in the area of "risk management" of your business - cos you have to balance the probabilities of them moving by different amounts, how much your business could lose if they did move by those amounts, against the cost of your "bet"
(e.g not a lot of point paying 1M to bet that the pesos will double in value against the $ and that would cost you say 5mill more in product costs - yes it COULD happen but its VERY unlikely . But it might be worth paying 1M if say a 1% rise would cost you the same amount
THATS where risk management comes in - to determine if an hedging strategy is necessary - and if so determine what is should be)
收錄日期: 2021-04-24 01:05:22
原文連結 [永久失效]:
https://hk.answers.yahoo.com/question/index?qid=20180503122507AAFBsKi