Dollar Hedge

Discussion in 'Forex' started by gdtrader, Nov 25, 2008.

  1. Say I wanted to hedge against a decline in the dollar what would be the cheapest way to do it with lots of leverage?? Say for example I wanted to hedge 1mm of todays dollars?? How much would such a transaction cost to hedge and how would I do it??

  2. buy calls on UDN
  3. A bit expensive for one and I want somthing that goes out further than June 2009... Maybe currency option contract of some sort??
  4. Hedge against what? You need a 2nd asset. What is your time frame? To hedge $1,000,000 USD against the Canadian Dollar (CAD) Buy 13 contracts CAD futures. With IB the margin required is about $57,915.

    Trading Guru
  5. great that is what I was looking for.. for your example what was the time frame for somthing like that?? I was looking 2-3 years out of the money option contracts... USD v.s. Cad or maybe mix of CAD, Yen, JPY option contracts for 2011 or somthing.. Just looking for a dirt cheap insurance policy. Less cash to layout the better for me. This is why I was looking for maybe out of the money.. currency contracts.