HedgingKosten
HedgingKosten is a term used to describe the total expenses associated with establishing and maintaining a hedge to reduce financial risk. Common in corporate treasury, asset management and trading, the concept covers explicit fees and implicit economic costs that arise when using derivative contracts or other instruments to offset market exposures such as currency, interest rate, commodity price or equity risk.
Components commonly included under HedgingKosten are premiums for options, bid–ask spreads, brokerage and clearing fees, margin
Measurement and reporting of HedgingKosten can be complex. Firms may calculate total cost over the hedge horizon,
Practical implications include impact on pricing, margins and investment decisions. Techniques to reduce HedgingKosten include netting