Forex Hedging is one of the few areas where we can calculate both the Actual P/L and the Opportunity P/L as the first step in trying to maximise the Actual Profit and minimise the Opportunity Loss.



Performance measurement under the KSHITIJ Hedging Method captures both Actual P/L and Opportunity P/L in an objective manner on an ongoing basis, using the NEER.

The effort always is to maximise the Actual Profit and to minimise the Opprtunity Loss. Of course, this is easier said than done. We recommend aiming for a 1:1 ratio between the Actual Profit and Opportunity Loss over time. If this ratio is consistently maintained, the company will not only have a robust hedging programme, it can also gain a competitive advantage.





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Systematic is better than discretionary

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