In speculating using an FX forward, a doubling of the exposed position occurs instead of a counterbalancing of the exposed position.

Name: In speculating using an FX forward, a doubling of the exposed position occurs instead of a counterbalancing of the exposed position.
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Quizplus · Accepted Answer

In speculating using an FX forward, the goal is often to counterbalance the exposed position rather than doubling it. This is done to hedge against currency risk, not to increase exposure.

In Speculating Using an FX Forward, a Doubling of the Exposed