Schweser Bk 4 pg 156 LOS 29g
Dear all,
Subject: Hedging with futures or forwards
I have read the text provided by schweser on ‘Hedging with futures or forwards’.
In the fifth bullet point it says ‘Most bond and equity hedging in done with futures even though this usually creates some cross-hedge or basis risk because the futures provide ongoing liquidity and are continually priced
Can anyone please provide me with an illustrious example of actions/profit and loss.
Thank you