DISCLAIMER: The definitions in this Glossary are for educational purposes only. They do not replace in any way the definitions used in local and global self-regulatory and regulatory codes and standards. The definitions in this Glossary do not in any way constitute advice. In no event shall Assure Hedge be liable for losses or damages arising from the use of information presented in this Glossary. We make every effort to ensure, but do not guarantee, the accuracy of the information in this Glossary. Information may contain technical inaccuracies or typographical errors. All content and information in this Glossary can be changed or updated without notice. If you find any inaccuracies or omissions in this Glossary, please let us know.

Derivative

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Discover other concepts in our
currency hedging glossary

Base currency

The base currency is the first currency shown in a foreign exchange quotation. The second currency in the quotation is called the quote currency, or counter currency.

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US Dollar Index

The US Dollar Index measures the US Dollar’s value relative to a basket of six currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona, Swiss Franc.

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Zero-cost hedge

A zero-cost hedge is a hedging strategy that doesn’t have upfront costs. The hedge is constructed in such a way that any premium you have to pay to set up the hedge cancels itself out.

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