are currency future are only bought to hedge the risk (For both receipt and payment)are the instances where we had to sell and then rebuy them like interest future hedging?
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regarding currency futures
4y ago#1Financial managers only use futures to hedge against the risk of exchange rate movements and the futures deal involves both buying and selling the futures.
Other investors use futures in order to try and make gains (just as some buy and sell shares in the hope of making gains), however this is not what financial managers should be doing.
Yet again I explain this in my free lectures. You cannot expect me to type out my lectures again here :-)
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