Question by K P: I want know about forex hedging so can any physique describe me? our company is importer so want get advantage of?
what ought to i do for that do we want to contact any broker is so than can u give me details of it or what process is requrd we r importer & require to do remmittance frequently so came to know that thro forex hedging we can get advantage getting foreign securities. can anybody clarify me this as my boss have given me this task.
paricularly in india
Solution by Tina
You prob have to talk to your broker/banker for a skilled suggestion. If you are an importer, you ought to preserve an eyes on the denominated currency of your transaction. If you feel the currency is going to raise, you prob have to get a forward contract to defend the foreign exchange price so your organization can remove accounting loss in forex. Another way is getting choice, but choice generally need certain premium. the advantage of option is you will not have to buy the currency at the agreeable value if it expense a lot more than potential spot charge. Some foreign currency does not have forward contract, then you can do foreign cash market place.
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