Hedging foreign currency cash-inflows with currency futures is preferred since: the basis risk involved is usually very large the hedge is almost perfect with small basis risk no payment has to be made upon a margin call no basis risk involved in using currency futures Hedging foreign currency cash-inflows with currency futures is preferred since: the basis risk involved is usually very large the hedge is almost perfect with small basis risk no payment has to be made upon a margin call no basis risk involved in using currency futures