Hedging through Currency Futures - CA Final SFM (New Syllabus) Classes & Video Lectures

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Hedging Foreign Exchange Risk Through Currency Futures:
If the company that is planning a hedge the foreign exchange risk, is an importer and has to settle the payment in foreign currency, it will have the need to buy such foreign currency.
If the importer company decides to hedge the foreign exchange risk through currency futures, then it should take a long position in currency futures, if the currency future contract is given in foreign currency. Inversely, it should take short position if currency futures contract is available in local currency.
If the company is an exporter and has to receive the amount in foreign currency, it will have the need to sell such foreign currency.
If the exporter company decides to hedge the foreign exchange risk through currency futures, then it should take a short position in currency futures, if the currency future contract is given in foreign currency. Inversely, it should take long position if currency futures contract is available in local currency.
#CurrencyFutures , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,

Пікірлер: 83

@kumarjai39 5 жыл бұрын

My god this was so simple i did not know earlier and just ended up getting confused what position should take. Thank you sir for this kind of video.

@user_suwjhwhqjakoaoq 3 жыл бұрын

Hi sir thank u for your lectures, if possible please incl English subtitles in hindi vidios so that wide range of students can be benefitted

@sweetu4717 4 жыл бұрын

sir u explain everything in so easy way... i find derivatives easy just bcz of you

@dianajohns3779 4 жыл бұрын

I started loving FOREX IN SFM NOW.. i was even afraid to look at a question in this chapter earlier. Sir, you are the best teacher for SFM.... thank you so much!!

@NikhilJobanputra 4 жыл бұрын

You're most welcome

@chaitanyabogineni976 5 жыл бұрын

Thank you so much sir. I watched few videos a day before exam and it helped to gain few maths just because of your videos.

@aniketbarve887 4 жыл бұрын

Superb clarity Much needed for may 2020 sfm Thanks 🙌

@camohsinataj842 4 жыл бұрын

Sir,you are just wow!!! I wish I knew about you earlier and could have taken your classes

@NikhilJobanputra 4 жыл бұрын

Thanks and welcome

@vikasmishra2493 5 жыл бұрын

Thank you sir for uploading videos....it really helps a lot..May God bless you

@Pooja-hz3cn 5 жыл бұрын

Best..this always haunted me..now my concepts are clear..thank u sir

@shreshtalakshmi 4 жыл бұрын

Sir, you said margin was supposed to be deposited, but while calculating total outflow why margin was not considered?? @22.11

@Vishal-kg6fv 4 жыл бұрын

Sir if margin is in foreign currency then what treatment will be done.

@007PSD 3 жыл бұрын

Can't get simpler than this. Fantastic explanation.🙏

@NikhilJobanputra 3 жыл бұрын

Glad you liked it

@jaspreetkaur-ry6uq 4 жыл бұрын

Sir u explain very nicely, Thanks alot. You connect the concept very deeply and practically. Thanku sir.

@prarthanapawar7931 4 жыл бұрын

Thank you so much sir..you are just awesome👏👏

@myblrapp9627 4 жыл бұрын

Fantastic!!! Millions likes!!

@cakunalsinghal22 5 жыл бұрын

sir is it related to derivatives chapter

@gulshamaansari2299 5 жыл бұрын

God bless u sir... Ur videos r really very helpful

@yogitakhanna3964 Жыл бұрын

Sir, I have a doubt that how we will know if the currency futures contract is given in foreign currency or local currency so that it can be determined to take long or short position in case of importer company. I would be thankful of your reply .

@jayg4212 4 жыл бұрын

Hello sir . What are the types of currency hedging ???

@swatibhilare4539 4 жыл бұрын

Hello sir....these scenarios from importer point of view....have you uploaded sums on pointof view exporter.... couldn't get find....

@hhanumantharaya 4 жыл бұрын

Sir after watching ur class I am very clear regarding the forex but I have some doubts about direct and indirect quote how can I simply remember this sir please help me

@ishakhandelwal3690 10 ай бұрын

thanks a lot sir!!

@prathyushareddy2137 5 жыл бұрын

Sir in the 2nd problem why we have taken spot price adopted by future market...@29.26 in the video??

@NikhilJobanputra 5 жыл бұрын

Hi..! Obviously the price that you have to consider is the one adopted by Currency Futures Market, for determining the Gain or loss on currency Futures contract. This is because the other rate given is the rate quoted by the bank for spot transactions which may not be same as the rate adopted by Currency Futures Market.

@sakshigupta3292 4 жыл бұрын

@@NikhilJobanputra Sir , we took future so that the spot rate exposure can be hedged..why would be compare two rates in the future market only for calculating the gain or loss ?

@koppadipraveena5027 2 жыл бұрын

That was so clear sir.. Thank you

@abinvincent482 Жыл бұрын

Thanks beautifully explained.

@archanapathak1647 4 жыл бұрын

Sir can you please explain that why margin amount deposited is not considered in outflow.only interest is cosidered as outflow

@utkarshsoni9099 4 жыл бұрын

Because you get your margin back from the bank.

@nagendranagu7129 4 ай бұрын

Sir where can we access your notes pdf

@DEEPAKKUMARSINGH-be3oj 4 жыл бұрын

Thank you so much sir

@DeepakSharma-bh4mx 6 ай бұрын

I think the company should opt for another option i.e. to pay immediately at spot rate of $ 64 as it would have a cash outflow of INR 4032000 only. The minimum of all the options available.

@vivekgupta496 4 жыл бұрын

sir, as you described , exporter with debtor of us dollar , but contract is in INR , So he should take a long position on INR future and if price of future on maturity is higher than contract price , it will be gain , but as per 1(d) of May-19 (Old syllabus ) , maturity price of future is less than the contracted price , but still problem has been solved as gain on maturity as per suggested answer of the Institute , Please explain the reason

@srinivasansubbaraju9222 4 жыл бұрын

yes even i was confused with same issue plz explain nikhil sir

@shalini3158 4 жыл бұрын

U r great sir 👌🙏

@parthnathwani9216 4 жыл бұрын

Sir , In case of hedging through options we consider the premium paid while calculating the total outflow then in case of hedging through futures why we are not considering the margin paid for the futures contract ? Sir, Please explain the logic behind it . Thanking you in anticipation.

@anilmishra1523 3 жыл бұрын

Bro actually margin paid is not an expense it's just a deposit and will be returned at the end of contract while the premium is a kind of outflow that option holder has to bear even if option not exercised.

@md.abdurrahman7170 5 жыл бұрын

Very good lecture on Currency future.Thank you sir.Please upload video in English since I am from Bangladesh enjoying your lecture.

@NikhilJobanputra 5 жыл бұрын

Thanks Abdur. I will surely upload the same in English very soon. Please stay tuned to my channel.

@parthnathwani9216 4 жыл бұрын

Thanks sir for this beautiful explanation of concept but sir as you said in question no.1 margin should be adjusted with Gain/loss in futures contract, then why don't we adjust margin with the gain of INR 75,000 and same in the question no.2 with the gain of INR 1,15,740.

@chanduparaselli5342 4 жыл бұрын

I think margin is refundable amount The only loss is interest on margin money which is to be adjusted at end

@avaneebhatt7786 2 жыл бұрын

Thank you Sir!!

@dikshagupta2629 2 жыл бұрын

Thank u so much sir for this video

@SakshiGupta-bd1fv 2 жыл бұрын

Thanku for much needed help

@hhanumantharaya 4 жыл бұрын

Ur my inspiration sir ,sir how can I attend your live class for sfm sir

@badadharavikram5035 4 жыл бұрын

Thanks You Sir..

@msr4958 Жыл бұрын

🙏🙏🙏🙏

@JaspalSingh-si4yt 3 жыл бұрын

Very well explained by you sir❤️

@ayushman3359 3 жыл бұрын

Awesome

@janthapurohit 2 жыл бұрын

Very much useful sir

@msr4958 Жыл бұрын

Class is superb sir

@aswathychicku3277 4 жыл бұрын

Omg !! Dat was really awsum.. I had never understood this logic before until I came across your video. Thanks a ton sir 👍

@NikhilJobanputra 4 жыл бұрын

You are most welcome

@mohdtajuddin2182 5 жыл бұрын

Sr plz post equity valuation models videos

@user-zp5qi3pk3q Ай бұрын

Thank you sir, such a simple explanation ❤❤

@srinivasansubbaraju9222 4 жыл бұрын

sir plz explain may 2019 old syallabus 1(d) currency futures sum

@sidharthsrivastava6228 5 жыл бұрын

Thank you sir!!! Please explain all d questions whose solutions r not given in your book. Actually I purchased your book but many solutions r not given which creata a problem.. Please sir...

@NikhilJobanputra 5 жыл бұрын

Hi Sidharth, Please contact me directly in this regard.

@kapilsen4902 3 жыл бұрын

Thank ☺️ u sir

@dayareddyy Жыл бұрын

thanks a lot sir

@NikhilJobanputra Жыл бұрын

Most welcome

@moviebuzz7652 5 жыл бұрын

Sir is english classes available?

@NikhilJobanputra 5 жыл бұрын

Yes Dear..! Classes in complete English are available. Please Contact Meeta Madam at 7400448022

@DharmendraGupta-yc8kz 4 жыл бұрын

Sir plz foreign currency borrowing and investment ka video daliye

@swatibhilare4539 4 жыл бұрын

Is there any way....to watch all your derivatives class on contine basis...

@swatibhilare4539 4 жыл бұрын

Like concept#1 2 3 for derivatives

@NikhilJobanputra 4 жыл бұрын

Avail the complete videos. Please call at 7400448022

@swatibhilare4539 4 жыл бұрын

@@NikhilJobanputra thank you sir...

@kkantajay 5 жыл бұрын

Thanks you SIR 🙏🙏

@georgiasheriff7443 2 жыл бұрын

Can we have this in English please?🥺

@NikhilJobanputra 2 жыл бұрын

Definitely Yes..!! I shall upload the English Version of this Video ASAP

@ramgovind8685 5 жыл бұрын

Sir fcff fcfe concept please upload

@NikhilJobanputra 5 жыл бұрын

Sure... At the earliest

@kapilsen4902 3 жыл бұрын

Omg it's ladoo

@himakr4079 4 жыл бұрын

Sir please speak in English ...understanding will be much easier for everyone...

@akshayaravi8536 5 жыл бұрын

pls use english sir.

@anjalishrivastavsoni2049 5 жыл бұрын

Sir please speak in English only... Every one will understand.. As we have to write paper in English.

@NikhilJobanputra 5 жыл бұрын

Thanks Anjali for the feedback. I will have my videos of CA Final in both the languages. My all videos on CFA Level 2 are in english only.

@neetujain5381 3 жыл бұрын

Aap convert kr lena

@segunhudu260 Жыл бұрын

pls try to teach in English pls