A US party goes long a forward contract on €1 denominated in dollars in which the underlying is the euro - Who is buying?

as titled, can someone help me understand who is buying what in this scenario?

There is only the U.S. Co. (unless you want to consider the Dealer).

I assume this question is in regards to Currency Hedging. Their Long the Euro, so the risk is the Euro depreciate.

To hedge, you would create an offsetting position that essentially is short the Euro.

Hope this helps.

Also relax, I think you are in good shape for tomorrow.

Best of luck.

Ahh just noticed what you were asking, my apologies. They are long a Euro contract denominated in dollars, if this an FX, the risk is then dollar depreciating, or Euro appreciating.

Actually im really sorry I dont know what Im talking about anymore. My brain is fried. Hopefully a more seasoned poster can chime in.

Apologies.

It sounds as though the US company is long the euro and, consequently, short the dollar; the counterparty is long the dollar and short the euro.

Out of curiosity, why would anyone go to all this trouble for EUR1? It seems . . . you’ll forgive me . . . paltry.

Just remember you are long the underlying and you’ll be fine.

thats actually my question, so underlying here should be the price currency or the currency we are buying, i guess usd here?