methods of hedgingForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › methods of hedgingThis topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts August 28, 2021 at 2:18 pm #633267 AshleyMarc1997MemberTopics: 48Replies: 24☆☆I have two questions relating to methods of hedging the transaction risk.[Question 1] They all are used for Short-term hedging techniques: Forward Contracts; Money Market Hedge; Currency Futures; Currency OptionsIt is a Long-term hedging technique: Currency Swaps[Question 2] They all are used for hedging big amounts of foreign currency: Forward Contracts; Money Market Hedge; Currency Futures; Currency SwapsWhile these are used for hedging lower amounts of foreign currency: Currency OptionsAm I correct? August 28, 2021 at 3:40 pm #633274 John MoffatKeymasterTopics: 57Replies: 54699☆☆☆☆☆You are correct for question 1.For question 2, forward rates can be used for small amounts, the others are for larger amounts.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In