Arbitrage, Hedging, and Speculation: The Foreign Exchange Market
Explains arbitrage, hedging, and speculation from the standpoint of a participant in the foreign exchange market--whether an individual trader or an institutional trader--who possesses analytical skill, economically sound judgment, and who has access to market data. In the foreign exchange market, arbitrage involves the simultaneous purchase and sale of a currency in different markets; the profit comes from the difference in the buying and selling prices. Hedging and speculation are opposing strategies for dealing with risk; hedging is a cover, and speculation is an assumption of risk. Authors also discuss futures, swaps, forward contracts, and other strategies. For financial scholars, students, analysts, and currency traders.
What people are saying - Write a review
2 Currency Futures Swaps and Hedging
3 Currency Options
Simple Options and Exotics
5 Arbitrage and Hedging with Spot and Forward Contracts
6 Arbitrage and Hedging with Options