Need to hedge out FX exposure - Ideas

J

jj90

I need to hedge out 1M EUR/TRY short with the following conditions:

1)1:1 delta hedge up to 10% upside. EG. Short EUR/TRY@4.00, no losses until 4.40. Then possibly 1:1 losses from delta or whatever(better)

2)EUR/TRY below 4 is irrelevant. I can give up all upside from the short.

If I had an option risk graphing tool this would be a lot easier, I would just play around and get the result possibly a split strike reversal variant.

Any suggestions? Or is my only choice some sort of OTC structured product?

If it's fairly vanilla I can execute thru my hedge broker(Saxo) although their quotes are pretty horrendous.
 
jj90 said:
Yes. Irrelevant of size this needs to be done.
More...
The point is that no-body is going to do a bespoke OTC for you on $1M notional, it's far too small and as in many aspects of life, size is relevant. If they do, the pricing will be as bad as you're seeing at Saxo.
 
You must log in or register to reply here.
Back
Top