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To: yard_man who wrote (244067)	6/5/2003 9:38:40 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 436258

tippet no bank would hedge 150K to 250K a month that is the problem. They all want $1 million shots. I advised them to buy all their needs for a quarter, but at gross margins of 20% to 25% hedging is expensive and there is no one that will watch the FX markets daily. Forwards are not the answer only dynamic hedging which is also difficult because of volatility. That is the problem the amounts are to small for having some one hired and watching. The other problem is that those are small businesses and usually the owner is sensitive to any potential losses - difficult to farm it out. Futher there are the strict securities laws and a third party can be exposed to litigation. In a nutshell no real solution for small to medium size business IMHO FX markets are now similar to the GOGO days of the DOT.COM period