Hedging using covered warrants

[bikhod]

Hi

A while ago I read an article in the Fool.co.uk that said it is possible to use covered warrants (CV) to hedge against property price falls. As well as property, I am also interested in hedging against dollar falls.

Has anybody got experience of using CVs? Is there a good company that offers advisory service for hedging using CV or options?

Thanks

 

[Robertral]

Hi

A while ago I read an article in the Fool.co.uk that said it is possible to use covered warrants (CV) to hedge against property price falls. As well as property, I am also interested in hedging against dollar falls.

Has anybody got experience of using CVs? Is there a good company that offers advisory service for hedging using CV or options?

Thanks

I don't think it's a good idea using a financial instrument that says "house price" to hedge against house prices as the house price instument will be an avergae of the whole country and you need it to be a speficic post code i.e "SE1 House price CV"

YOu can use CV for hedging FX etc.....

 

[the blades]

Hi

A while ago I read an article in the Fool.co.uk that said it is possible to use covered warrants (CV) to hedge against property price falls. As well as property, I am also interested in hedging against dollar falls.

Has anybody got experience of using CVs? Is there a good company that offers advisory service for hedging using CV or options?

Thanks

You could consider spread betting to hedge these. IG index offer quotes on regional house prices and most SB providers offer quotes on all currencies.

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