Netting Benefits Outweigh the Risk of Adverse FX Rate Movements

16 Nov 2020
Date submitted
16 Nov 2020
Resource type
Best practice
File type
Web page Web page
By delaying the execution of certain FX trades to capture the benefits of netting, additional
market and timing risks are assumed. FX Transparency argues, however, that the FX market is
efficient, and hence just as likely to move in the investor’s favor over that time horizon, as it is to
move against the investor, and that over the long run, the effects of market timing are a zero-sum game. Investors are left with the savings of netted trades derived from executing lower
volumes in the market.
To access white papers, case studies and best practices. Please sign up to become a member of bobsguide. If you are already a member please log in.
Enter your email address
Remember my email address