Hedging in Practice

Read these first

1. 01Choosing The Hedge Instrument

   Once you know what to hedge, you still have to pick the instrument, and the right one trades off tracking accuracy against cost, liquidity and how quickly you can put it on and take it off.

2. 02Cross-Hedging With A Proxy

   When nothing trades directly against your risk, you hedge with the closest liquid substitute you can find, and the whole skill is being honest about how imperfect that substitute is.

3. 03Deciding What Actually Needs Hedging

   Hedging every risk you can name is not the goal, it's identifying which risks are unrewarded and unwanted, because a hedge you don't need is just a second position paying away your edge.

Then the rest

1. 04Basis Risk: When The Hedge Does Not Track
2. 05Beta Drift And When To Re-Hedge
3. 06Budgeting For A Tail Hedge
4. 07Did The Hedge Actually Work?
5. 08Futures, ETFs Or Swaps: Picking The Hedge Vehicle
6. 09Hedge Slippage And Timing The Hedge Trade
7. 10Hedging A Position You Cannot Trade
8. 11Hedging Into A Macro Event
9. 12Hedging Into An Earnings Print
10. 13Hedging The Currency On A Foreign Book
11. 14Taking The Hedge Off
12. 15What A Hedge Actually Costs You
13. 16When Your Hedge Correlation Breaks
14. 17Working Out A Hedge Ratio In Practice