What is the difference between Passive Hedging and Active Hedging?
To hedge or not to hedge is a dilemma that needs to be faced whenever currency risk comes into our lives, stemming from having spread our investments or business in foreign assets. There is no global correct answer, as it will depend on the particular situation you face to: What is the risk currency? USD? EUR? ZAR? What do you expect from this risk? What are the hedging costs? etc.
Every problem requires its own study and currency risk strategy.Read more