Hedging a Real Exposure

Hedging is not a view on the market. It is a decision to stop having one. This course starts from a real exposure, sizes an instrument against it, and states exactly what risk is left once the hedge is on.

₹499/- ₹0

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Six things you will be able to do

Go past the textbook hedge. Learn to size one against a real exposure, and to name what it leaves behind.

01 Define the exposureAmount, currency, direction and date, written down before any instrument is chosen.
02 Choose the instrumentForward, futures or option, and what each one costs you in flexibility.
03 Size the hedgeCompute the ratio rather than assuming one for one, and know why it differs.
04 Model both outcomesWhat happens if the market moves your way, and if it moves against you.
05 Price what it costsPremium, margin and the upside you gave away, all counted as a cost.
06 Name the residual riskBasis, timing and quantity mismatch, stated openly once the hedge is on.

What changes after this course

You stop asking whether to hedge and start sizing one against a specific exposure, with the residual risk written down beside it.

A real exposure defined: amount, currency, direction and date

An instrument chosen and sized, with the ratio computed rather than assumed

The residual risk stated plainly, because no hedge removes all of it

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