Foreign exchange hedging strategies are actions which are designed to help offset a given risk in one investment by making an investment in another market which provides more security. There are many strategies for foreign exchange hedging, including hedging every risk, not hedging any risk, and being selective about the risks you hedge. The strategy chosen will be unique to every individual
. situation as every investment carries its own risks and rewards. It is always best to thoroughly evaluate every investment opportunity for potential risks in order to make an educated hedging decision. For more information regarding the available foreign exchange hedging strategies, you can visit http://eprints.qut.edu.au/315/1/WP_McCarthy_Hedging.pdf.
