Questions tagged [hedge]

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16
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2answers
16k views

Why using 3 months forward to hedge fx risk on a fund of funds portfolio?

In my previous job, a fund of funds, they used 3 months forward FX contracts (renewed every 3 months) to protect their portfolio against currency risk. If I do understand why forwards are useful for ...
3
votes
2answers
746 views

Why/How does a hedged portfolio make profits?

This is probably a very easy question but I am new to the field and couldn't find an answer. Assuming that I am building a hedged portfolio with a long option and going short delta on the underlying. ...
0
votes
0answers
74 views

Option arbitrage from portfolio value on bitcoin market

I'm trying to arbitrage bitcoin option market but I have issues because : The trading asset and settlement is in BTC I want to earn money regarding USD I neeed to be constantly hedge I have ...