FX Protection

Discussion in 'Forex Trading' started by Barnesy, Apr 29, 2008.

  1. Barnesy

    Barnesy

    Hi all,

    I'm looking for a way to protect a constant future monthly cash stream against adverse fluctuations in fx. ie. limited downside risk, unlimited upside.

    For example, would I buy a series of forward starting options on a constant notional? Is there a specific name for this type of trade and would it be very costly? I understand it will depend on the vol, but what kind of premium would I be looking at right now?

    Thanks, and any help would be much appreciated!!!
    Simon