Hello Sir, can you please please help me understand about buying/selling futures in managing Exchange rate risk
I'm super confused,, I have watched your lectures but i really dont understand about how do we check whether we should buy or sell?
it's different in different examples and I dont understand the key to crack this...
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Futures
5y ago
5y ago#1I do explain this in the lectures.
However it depends what currency the contract size is quoted in.
If the contract size in in $'s, then if the transaction involves buying $'s we will buy futures. If the transaction involves selling $'s then we will sell futures.
(The same applies whatever currency the contracts are quoted in, but in the exam it will almost certainly be in $'s.)
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