1. One-to-one hedging, such as arbitrage hedging. As the name implies, it is to take interest (inventory fee). The inventory costs of different foreign exchange platforms are different, even very different. This difference value (one party buys, one party still has arbitrage space after selling) is multiplied by a certain leverage ... This is the simplest arbitrage combination. Some people even seek to open an "Islamic account". You can learn more.

2. More complex ones are often called hedge portfolios. The simplest example is that in some cases, some investors will do the following things at the same time:

(1) Buy AUD/USD.

(2) Buy USD against JPY.

(3) sell the Australian dollar against the Japanese yen.

On the surface, he didn't buy anything, but in fact he didn't. Because they may be blocking a message, that is, the monetary attributes of these three countries, they will seize the big opportunity that passed by under the premise of high probability of capital preservation.