Thanks pcg!What I don't understand isaren't the two positions the same:Buy USD/JPY + Sell USD/JPY swap = Buy USD/JPY Forward

Thanks a lot pcg!!!!!1) So do you mean forward hedge is always the more convenient way to do delta hedge as if you do spot hedge you need to also do IR hedge.2) Do you know what "delta exchange" mean? Would it be a forward trade in this case?Thanks again!

<t>Hi,I was interning at a FX options desk (market making) last summer. Two quick questions:1) When do you use forward hedge for a delta neutral trade? Why forward hedge with uncertainties when spot hedge is available?2) I always heard of the phrase "delta exchange with client." Does it mean if you ...

<t>Hi there,I was told this during my summer internship at a FX options desk :If you think the interest rate differential between USD and JPY will go down, you should (theoretically):First, buy USD/JPY spotThen, sell/buy USD/JPY swapsthat way you don't hold any spot position but only rho positionbut...