Currently the aussie dollar is sinking (though I think it may reverse soon). This is fine if you are long in US stocks, but not so good if you are short.
So,for those trading international markets, do you hedge against adverse aussie$ movements? Or do you try to be in and out so quickly that it doesn't matter?
BXP
6th-July-2005, 11:22 AM
what about the A$ warrants on the ASX or the A$ futures in America. Try www.cme.com
tech/a
6th-July-2005, 11:47 AM
Mark.
If trading long term then I can see the need.Futures would be a way to hedge either Long USD or Short AUD.But unless the move was substantial and or the amount being invested was large---is it really necessary?
But if trading short term wouldnt it be a case of swings and roundabouts.
Like trying to hedge interest rates buy using futures---a short term method to a longterm problem.
