French corporates tap €/$ accumulators

By Beth Shah
14 Oct 2014

French corporates have been picking up accumulators on the euro against the US dollar as a tool to buy euros for a more favourable exchange rate by selling volatility in return.

According to fx options traders in London, larger-sized French corporates -- particularly firms with $ earnings – prefer to buy euros; therefore, an accumulator is the most efficient way of doing so.

“An accumulator is basically a zero-cost option that offers buyers a more favourable rate than the ...

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