Forex for real

Author: Jamie Coleman | Category: News

A good article from the Journal on the basics of forex hedging for small business.

Clients can lock in an exchange rate for any date in the future via forward contracts. The contracts are not a prediction of future exchange rate but merely the spot exchange rate plus or minus the forward points which are derived via the interest rate differential between the two currencies in the currency pair.

Buying AUD forward would cost you more, if you are in the US. Buying JPY forward would cost you a little less…