From a jurisdictional point of view, we can (in principle) divide transactions in the global market for Australian dollar derivatives into three types, namely local-to-local, local-to-offshore, and entirely offshore. In fact the distinction between a local and an offshore market participant is not entirely straightforward, since many local participants are affiliated with offshore entities.
You can make two errors: not send your wife flowers on Valentine's day or insure yourself by ordering the flowers in advance. Every married person knows which error is more dangerous. Readying buffers in preparation for an uncertain future By the way, that is how I, personally, approach risk management: What are the consequences of the errors?