I have a short position in CHF (i.e. by selling CHF to buy USD in the forex). It is cheaper than owing USD since CHF has a much lower interest rate than USD. Then I bought CME CHF futures Jun 16 2025 to lock in the exchange rates so as to hedge the currency risks.
Let's say I owed 250,000 CHF and bought 2 contracts of CHF futures (whose contract value is equal to 250,000 CHF). However I found out I suffered a loss even when I have hedged the position, and the loss kept growing every day. Ouch!
Is that normal? Did I do something wrong?
What could I do to somehow/completely close the loss gap?
What about currency options? I'm still learning options. How could I pick the right option? Please give me some pointers.
Thank you for your time and answer.