Forex Explained
Can someone explain what is meant by coverage of forex trading.?
Hedging is buying an additional quantity of goods which may need to work. For example, if you may need to deliver 100,000 ounces of gold market and property held only 60,000 ounces, to buy another 40,000 OZS Forward Cover. This may be applicable in the Forex futures market but not in the spot currency market that most of us participate in. There is no actual delivery in the Forex market Spot. All transactions are performed in the differential pricing of currency pairs. Cheers, Paul
