The ratchet structure: improving with the market

PROBLEM: Clients who have the freedom to choose whether to hedge using forwards or run the spot risk, hoping to benefit from favourable moves, have often decided to use strips of knockout forwards as an alternative. The decision is the logical result of the client taking a view that spot has an attractive chance of remaining above the knockout barrier without significantly exceeding the strike at expiry time, thereby securing a better transaction rate than either spot or forwards would have

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: