“on the forward market, I hedged a long exposure to the dollar”
getting me juuust a little confused… given this statement… did you just did you just take a long position on dollar currency. or the other way around, did you take an offsetting position (hedged it) to your long exposure to the dollar.
hedging AGAINST the dollar i understand. you protect yourself from the dollar depreciating by entering into a long forward.
but hedged (emphasis on past tense) a long exposure… meh
it may sound stupid, but i hope someone gets my confusion, and just give me a straight up answer. im embarrassed as it is. lol
I read it as you were long USD, so therefore needed to hedge this exposure by taking a short USD position using a forward.
I could be wrong though. I find talking currencies kinda confusing. I always need to twist my brain for a couple of seconds to understand what’s going on.
That’s correct. You would have to sell forward the dollar.
“I hedged blah blah,” means you took a position opposite to “blah blah” so that your net exposure is 0.
Yeah okay, i shouldnt have second guessed myself then. hahaha thanks thanks
yes yes totally get it. my concern was it could be an exlamatory statement like “put your foot down” or “stand your ground”… “i hedged a long exposure”… got that? hahahah
but yeah… formally… it should be i hedged a long exposure as in… “i verb a noun”
I don’t get it. lol Sorry. I’m trying to think about it, but I can’t make sense of it.