Because the hedges are reset on a monthly basis, currency risk can develop intra-month, and there is no guarantee that the short positions will completely
eliminate currency rate risk.
Not exact matches
The flexibility to strategically route payments between selected acquirers transforms international payments into local transactions,
eliminating cross-border and
currency - conversion fees and optimizing costs and acceptance
rates.
Sonnet
eliminates that spread by selling
currency to customers at its own buy
rate; it then charges a single flat
rate ($ 150 on wires worth more than $ 10,000; $ 75 on smaller transactions).
That's the reasoning behind
currency hedging: it's designed to
eliminate that second risk by removing the effect of fluctuating exchange
rates.
To reduce or
eliminate the impact of changes in foreign exchange
rates, ETFs that invest in non-Canadian assets are
currency hedged.
ETFs that employ a
currency hedging strategy seek to
eliminate all (or substantially reduce) the effects of foreign exchange
rate changes.