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Hedging your Forex Flow with The Tightest Spreads

When I talk about Hedging, I am not referring to your uncle’s obsession with designing his garden with tall bushes shaped like sports cars or giraffes! Hedging is a technique that every trader or investor should be familiar with it.

The best way to understand hedging is insurance. When traders or investors try to hedge, they are insuring themselves against negative events. If you are fully hedged in case of an unfavorable event, the negative impacts on your positions are significantly reduced.

Reducing the risk of an adverse price movement, hedging, is a critical component to employ in your trading strategy. Hedging is an advanced investing strategy, yet the principles of hedging are quite simple. For example, imagine your cousin who is in New York and wants to visit the UK—he soon calls and tells you to go to Western Union to buy him 1000 GBP and pay maximum 1310 USD for the transaction. When you get to the Western Union, you manage to buy the 1000 GBP for 1290 USD. You still decide to sell GBP to your cousin at the price he was willing to pay, 1310 USD. You made 20 USD in profit, and you hedged yourself from any risk against price movement.

So if you quote your clients with an agreed spread—let’s say 0.5 on 100K EUR/USD, and you get access to very tight spreads on EUR/USD from 0-0.1, you are hedging yourself.

We work with our customers to identify and manage their Forex and precious metals portfolio exposures. We have developed a process through a deep understanding of risks that their business is facing. Our solutions are intended to help your business grow and let us grow with you. Tradeview is dedicated to working with our clients every step of the way.

Changes in the foreign exchange markets can occur instantaneously, even faster than human reaction times particularly in the age of algorithmic, robot trading. Using automated market orders, you can make sure your business is protected against downside risk when unpredictable events happen.

We have worked with our experts to come up with a process to build a hedging methodology for Spot Forex and Precious metals that best fits your risk appetite and market position. This dynamic process facilitates access to regular market price updates and product information—both protecting your profit margins and maintaining the ability to participate in market movements.

Our Six steps Hedging Process:

  1. Recognize the nature of FX and precious metals exposure.
  2. Develop a simple risk management policy and strategy.
  3. Specify your profit margin, budgeted rates/goals
  4. Qualify the right tools and products that best suit your goals
  5. Execute your strategy.
  6. Evaluate your plan and adjust for changing markets, start from process #1!

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Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

TVM Global Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

Tradeview Europe Ltd.

Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C.

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.