Hedging, in any asset class, is ultimately a strategy to decrease or transfer risk in order to protect one's portfolio or business from uncertainty in prices. In case of hedging in the foreign exchange market, a participant who is entering a trade with the intention of protecting the existing position from an unexpected currency move, is said to have created a forex hedge.
The impact of the movement in the USD-INR currencies affects both importers and exporters. In other words, an importer will benefit when the rupee appreciates, while the exporter will gain when the rupee depreciates against the US dollar. The cost of import reduces when the rupee gains strength, thus benefiting an importer, and at the same time creating a loss for the exporter, since a stronger rupee will reduce the export remittances when converted to Indian rupees.
In order to reduce the risks associated with these uncertain movements in the financial markets, both importers and exporters can utilise the derivatives platform of currency futures. By creating an equal and opposite position in the derivatives market, a hedge can be created.
Money Circle is also a forex broker and provide purly hedging services only to our clients.
Our major advantages are that we provide extremly transparent system i.e. you will be dealing directly with the exchange and lowest brokrage charges than the banks are charging, thus reduces hedging cost very effectivly. You will have full control over your portfolio i.e. a software will provided with which you can decide when to enter or exit from a hedge position just by a push of a button.
We also offer to extend our services, wherein we will be hedging on your request. Only thing is you have to do is, formally inform us by email when to enter and exit the hedge positon.
If you wish, you can choose to subscribe our e-bulletin on forex, which we publish every Monday by the name of "MONEY THIS WEEK", where you will find the in-depth analysis of dollar and other major currency movements predicted in current week, at no extra cost.
To open an account , you can visit us , call us or write us at below addresses.
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T : +91-011-25102305
M : +91-09971794284
H-42 Bali Nagar,
New Delhi - 110015,