A hedging approach to FX Carry Trades using currency futures

Discussion in 'Trading' started by scalpmaster, Aug 12, 2007.

  1. If I long, say USD/JPY, for the interest differential
    in 100X leverage SPOT FX, can I hedge it exactly by
    shorting USD/JPY currency futures so I do not have
    to worry about exchange fluctuations?

    What's the catch/consideration in this approach??
  2. cvds16


    no, it's just the reverse position so this makes no sense. Read up on how futures are priced, intrest is calculated into them.