forex risk management

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Learn from India’s Best Professors Learn from India’s Best Professors Forex Risk Management Compiled by SuperProfs.com

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Forex risk management is one of the key concepts every forex trader should keep in mind. Forex risk management is a mix of several ideas that help control trading risk. 

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Page 1: Forex Risk Management

Learn from India’s Best ProfessorsLearn from India’s Best Professors

Forex Risk Management

Compiled by SuperProfs.com

Page 2: Forex Risk Management

Learn from India’s Best Professors

What is Forex Risk Management?

Forex risk management is one of the key concepts every forex trader should keep in mind.

Forex risk management is a mix of several ideas that help control trading risk. 

Page 3: Forex Risk Management

Learn from India’s Best Professors

Features of Forex MarketUncontrollableHighly volatile Vast in size

When a firm undertakes a financial transaction in any other currency other than the base currency, there exists foreign exchange risk.

Page 4: Forex Risk Management

Learn from India’s Best Professors

Foreign Exchange Exposure

Foreign exchange exposure studies the potential change in a company’s profitability and net cash flow on account of the change in exchange rates.

The different types of exposure include transaction exposure, economic exposure, contingent exposure and translation exposure.

Page 5: Forex Risk Management

Learn from India’s Best ProfessorsLearn from India’s Best Professors

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