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Forex Question: How to hedge spot forex with futures contracts?

Discussion in 'Forex Forum' started by milan81, Oct 13, 2015.

  1. milan81

    milan81 Guest

    Hello,
    I'd appreciate your help here.
    There is 1 BUY standard lot size in EURAUD (forex spot market).
    How would you hedge it with futures contracts?
    Simply SELL EURO + BUY AUSSIE, again 1 standard lot? I doubt so, as I tried it on demo accounts and after few hours I see it doesn't match.
    What would be the right calculation?
    Can it be 100% hedged or will there be always some differencies?
    Thanks for your advice.

    Source.
     

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