Hedging Strategies: Using Forwards, Futures and Options
Investors use hedging strategies to lower their risk exposure. These are strategies to handle the given situation in the market in case things do… Read Article
Hedging Strategies
Long Hedge – Meaning, Example, and How it Works?
A long hedge is a type of hedging strategy that producers or manufacturers use to lower the risk of price fluctuations. A producer or… Read Article
Hedge Ratio – Meaning, Formula, Importance, and More
Hedge RatioA hedge is a crucial component of the risk management process. Hedging one’s portfolio helps to mitigate risk and manage one’s exposure. Once… Read Article
Types of Exchange Rates
What are Exchange Rates?“Exchange rates is an amount of the domestic currency you will have to pay to obtain a unit of a foreign… Read Article
Transaction vs Economic Exposure
‘Transaction vs Economic Exposure’ is equivalent to comparing short-term vs. long-term impact on cash flow changes due to forex fluctuations in the market. Transaction… Read Article
Economic Exposure
Meaning of Economic ExposureEconomic exposure, also known as operating exposure (a type of foreign exchange exposure), refers to an effect caused on a company’s… Read Article
Transaction Exposure
Meaning Of Transaction ExposureTransaction exposure is a type of foreign exchange (currency) exposure incurred due to the fluctuations in exchange rates before the contract… Read Article
Translation Exposure
Meaning of Translation ExposureTranslation exposure is a type of foreign exchange (currency) risk of change in the value of a company’s assets, equities, income,… Read Article
Hedging
Hedging MeaningHedging in finance is a risk management strategy. It deals with reducing or eliminating the risk of uncertainty. This strategy aims to restrict… Read Article
International Financial Markets
International financial markets consist of mainly international banking services and international money markets. The banking services include the services such as trade financing, foreign… Read Article