Hedging forex trades
Hedging forex trades is really interesting subject. Obviously, the major concern while trading currency is in which direction the pair will go. Hedging can alleviate this anxiety and make a trader market neutral for example, and capable of making profit regardless which direction market will go. Although suited for more experienced traders, covering spot trades with fx futures or futures-options can make consistent profits. News trading should be avoided in general by those with little experience, but these spreads can be used as a tool for trading news. The major issue with futures-options is that they can be quite complex and hard to understand so some guidance would go a long way.
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Where do you trade these futures-options?
CME is one of the places, but other smaller exchanges also offer this type of products.