What is hedging in foreign exchange?
By using a forex hedge properly, a trader who is long a foreign currency pair can be protected from downside risk, while the trader who is short a foreign currency pair can protect against upside risk.
What is a money market hedge?
A money market hedge is a technique for hedging foreign exchange risk using the money market, the financial market in which highly liquid and short-term instruments like Treasury bills, bankers' acceptances and commercial paper are traded.
What is hedging in trading?