"I think the easiest way to hedge currency for a non sophisticated investor is through custom OTC currency options. There is no ISDA required, no need to leverage. It is almost identical to stock options except these are written as you need them by the counter party. If you "buy" puts or calls, that is all you are risking. Looking at yesterday's question, you decide term, notional, strike price and counter currency. As an example, yesterday I wanted to be long USD vs. JPY when the cash level was 79, I bought USD Call / JPY Put 79.5 strike, 30 day term at about 1% of notional. So, to be long $25,000,000 USD vs. Yen cost about $250,000 for the European style option with my bank as counter party. These options are liquid 24hrs a day (better pricing depending on time) and the bank can not exercise you until maturity.

" If I understood the question correctly, the investor could employ a custom strategy by buying one or a series of options, let's say two year USD Put / EUR, USD Put / NOK, GBP, Swissy etc. For the term, amount and strike that works for them.

"As long as they stick with the top tier banks (I'm partial to DB for obvious reasons). The inputs (Vol, Delta hedge etc) are tight.

"Get pricing from someone that knows what they are talking about and compare offers. Don't be taken advantage of."

David Fuller's view Thank you so much for this detailed explanation, contributed in the spirit of Empowerment Through Knowledge.