Explain techniques that cut the cost of hedging and alter the risk and return profile of a portfolio holding foreign-currency assets

Forwards cost nothing upfront but give up all currency gains; options keep upside for a premium, which can be trimmed. Out-of-the-money puts are cheaper than at-the-money ones but leave a deductible. A collar funds the put by writing a call, capping gains. A put spread writes a lower-strike put against the bought one, so protection stops below that strike. A seagull adds a written call to a put spread, reaching near-zero cost. Knock-in or knock-out features cheapen protection further, and deliberately over- or under-hedging with forwards is another lever. There is no free saving: each cut in premium means accepting some risk or surrendering some upside, so the choice must fit the client's view and tolerance.