As to the private investor to secure itself against rouble fluctuations
the Amplified instability in the world market puts the increasing pressure upon the Russian currency. Current sales of rouble basically are caused by flight of investors from risks of emerging markets which the Russian concerns also. Thus the news background from Europe and the USA only adds nervousness and provokes panic moods. Despite active attempts of the Central Bank to keep rouble falling through the mechanism of currency interventions, the national currency continues to become cheaper, in this connection the Central Bank is compelled to raise systematically the top border of a floating currency corridor. Against reduction of prices on oil and negative news from the USA and Europe it is necessary to expect strengthening volatilnosti national currency.
the Classical tool of hedging from currency risk is the future for currency pair — The most widespread are the future for a course rouble/ dollar or the future for a course rouble/ euro. So, for example, to be protected from rouble falling in relation to dollar till the end of the year, the investor needs to buy the future for a course rouble/ dollar with execution in December. It will allow to fix a current rate of national currency for this investor on short-term horizon.
Convenience of such way is that the guarantee of payment of indemnification to the investor from a negative course change is provided with the stock exchange, and calculation of the size of this indemnification is carried out daily. Therefore the investor in case of hedge operation constantly obtains compensation on zahedzhirovannoj a currency position in the form of a variation margin. Besides it the investor has a possibility if necessary to close a hedge through the conclusion of the return transaction with the future (for our example it is future sale).
In the presence of the open broker account on urgent section of a stock exchange use such way of hedging from a negative course change of rouble any investor can, directly exposing demands for purchase and sale of futures at a stock exchange.
Now hedging cost in the Russian market still remains enough expensive, therefore at weak volatilnosti a course efficiency of such way of insurance of risks can be low. It is necessary to notice that the basic liquidity is concentrated to the future market in short contracts, therefore if necessary zahedzhirovat, for example, the currency risk of annual investments decreases not only efficiency of used toolkit, but also additional risks are got. Both Russian stock exchanges have undertaken recently a number of positive steps on development and popularisation of the urgent market as from the point of view of maintenance of reliability of execution of obligations under contracts, and for increase in the list of tools and increase of their liquidity: free training seminars are spent many, classical strategy of work with tools of the urgent market reveal, the list of addressing futures and options constantly extends.
At presence at the investor of sufficient experience with derivativami it is possible to construct more difficult strategy of hedging with use of futures for different currency steams or with a different date of performance. Thus, for example, it is possible zahedzhirovatsja from rouble exchange rate decrease to dollar and euro simultaneously. But it is necessary to remember that at construction of difficult strategy a role and requirements to an estimation of risks of an investment portfolio considerably increase.
One more tool for hedging of currency risk are options. The choice of exchange currency options is insignificant, but unlike futures at purchase of options the investor at adverse for it price movement has a right to refuse contract execution, in this case the maximum size of its losses will not exceed the paid award on an option, the size have arrived thus potentially is not limited. Using an example above, for protection against rouble exchange rate falling to dollar the investor needs to buy an option for purchase of the future for a course rouble/ dollar.
option Sale is the firm obligation where the profit of the seller is limited by size of the received award, and possible losses at adverse movement of the price of a basic active of an option theoretically are not limited at all. Such structure of non-uniform distribution of risks does use of options by the process demanding high-precision calculations and the deep analysis. Therefore sale of options is carried out usually by large investment houses, and private investors usually buy options for hedging. It is important to remember that at position opening in an off-exchange option hedzher in addition accepts credit risk of the seller of an option.
In the market there are complex (package) investment offers — notes which comprise as directly investment making (the deposit, reliable bonds and etc.), and protection against certain risks. Notes inherently are a version of bonds. Degree of protection and the list of risks from which the insurance is provided, are defined in the specification of the note at the moment of its conclusion. Such way of protection of investments can approach the investors disposing of large enough sums as notes are issued by the big face-value (usually from 2 million dollars) And the investor joins a pool of buyers of the note. At note purchase it is necessary to understand that the investor takes up credit risks of the emitter of the note and in case of an inconsistency of this emitter there is a probability not only not to receive protection against risks (in this case currency) but also to lose a part of the basic investments. One more risk factor at note purchase is its limited liquidity: as notes address in the off-exchange market, if necessary the investor can sell to its very limited circle of persons (it is the emitter of the note more often). In a case if the note is got through the intermediary, efficiency of investments considerably falls, as the investor pays additional commission fee to the broker.
With development of the urgent market it is offered to attention of investors more and more new to possibility for hedging of currency risks. Independent use of tools of the urgent market demands certain skills to define the size of a necessary hedge and it is correct to be defined with a choice of tools for these purposes.