How to hedge an ETF when spot markets are closed
I came here looking for help and I think you might have the answer.
I am currently applying for a Trader position in a big firm, but I would be a Junior basically, I would be learning, although I have beenown for a few years.
However, I have read that one of the questions on the interview process on my next step is something like "How can you https://9apps.ooo/ the spot markets are closed?" and I can not come to a good conclusion. I have a few options:when
- If you want to hedge currency then you can use the Forex market so that foreign currency has no impact, but I do not think they are talking about currency.
- Using the futures market to short it?
- Someone said that their answer was "buying the underlyings" but I do not understand how that would hedge an ETF. If I have got an SP500 ETF how would I hedge by buying GOOGL, AMZN, FB, MSFT, etc... Profits would go in the same direction.
Thank you for your time.