Risk Management Techniques

Hedging Exchange Rate | Currency risk using Currency futures Simply think of these as items you can buy and sell

Hedging Exchange Rate | Currency risk using Money market hedging Let’s say that you were a UK manufacturer exporting to

Hedging Exchange Rate | Currency risk using Forward exchange contracts A forward exchange contract is a binding agreement to sell

Hedging Exchange Rate | Currency risk using Leading and lagging Let’s imagine you are planning to go to Spain and

Hedging Exchange Rate | Currency risk using Matching If you have a sales transaction with one foreign customer, and then

Hedging Exchange Rate | Currency risk using Netting If you owe your Japanese supplier ¥1m, and another Japanese company owes

Hedging currency/Exchange Rate risk using own currency invoice Arrange for the contract and the invoice to be in your own

There are three main types of currency risk as detailed below. Economic risk The source of economic risk is the

Foreign Exchange Market ( Forex, FX or Currency Market)  The foreign exchange market ( Forex, FX or currency market) is

In finance, the strike price (or exercise price) of an option is the fixed price at which the owner of