Trading Forex in Baskets to diversify trading risk for both, speculative trading or hedging Forex risk by 
Not all of us are speculators and we have many following the currency markets for hedging corporate currency risk for import/export reason.
Their goal is to maintain an average friendly currency on which they can calculate their product price.
Based on the chart below the present EUR/USD holding is 40% long of the amount you need for buying/selling foreign goods which must be paid/recieved in EUR/USD.
Important is the discilpine to follow, so you can take out the gamble strategy.
Important as well is the time forward.
Maybe you remember some airlines hedged their JetFuel 2 years forward at the highest point around $ 140 p/b while today it’s $ 50 p/b so they still pay the higest price for the next 2 years !
These well running airlines are now running into financial trouble.
Therefore it’s so important to adjust your currency risk each week/month and so to maintain an average friendly currency to hedge your corporate currency risk.
The four major currencies with hedge percentages on: http://www.2hedge.com/mmfxhedge.html
