Thanks everyone for all of your help and for taking the time to thoroughly respond. Because I never hedge, I just needed practical advice on the QUALITY and EFFICIENCY of each hedging method. Even though I never hedge, I am well aware of all of the pros and cons of hedging strategies/methods that people have used to try and eek out a profit that never work, or are marginally successful (triangular arbitrage, carry trades, etc). I am not hedging for any of those reasons... These last few responses have explained exactly what I needed to know. Thanks for all of your help.
And to answer Macroninja's question I am trying to find the most efficient way to remain 100% delta neutral in my forex position without the problems associated with having to constantly re-balance the deltas of futures options to remain delta neutral. I simply want to place a hedge and have it protect my position 100% on a 1 to 1 ratio, less any associated fees. I understand all the fees, swaps, spreads, etc, that are associated but those costs are insignificant for what I'm doing. Thanks again!
Last edited by excite2; December 31st, 2015 at 11:53 PM.
The "no forex hedging in the US" is a joke. What is considered hedging under this rule is not hedging. It's simply an accounting question using FIFO. You can have accounts at different brokers to get around this, if it's an issue for you.
But hedging would would really be more like a ratio write of options, or spreads, or other strategies that partially offset risk. There is no problem to do these.