Some Indian exporters have faced margin calls and losses due to the rupee’s decline, particularly after using an option structure called target redemption forward (TARF). This structure allows exporters to sell dollars on fixed dates, usually a month apart, at a predetermined rate. What’s your take on the use of such exotic option structures?
- High returns always come with high risks.
- Exotic trades are too complex and should be avoided.
- Exporters need better financial awareness and guidance.
- No idea, I don’t engage in currency trades.
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