delta cross hedge


A hedging technique employed when there is a mismatch between both the maturities and the currencies of two securities. Because the hedge trader wants to use one of the securities to offset the risk of the other, the two mismatches can cause calculation complications. The trader seeks to offset the percentage change in the currency of one of the underlying securities with the percentage change in the value of a futures contract on the other security.
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dynamic hedging strategy delta hedging