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Forex Risk Management 
Compiled by SuperProfs.com 
Learn from India’s Best PLreoaferns sfororms 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 
Learn from India’s Best Professors 
that help control trading risk.
Features of Forex Market 
Learn from India’s Best Professors 
 Uncontrollable 
 Highly 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.
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. 
Learn from India’s Best Professors
To watch lecture videos related to 
Forex Risk Management, visit 
SuperProfs.com NOW! 
Learn from India’s Best PLreoaferns sfororms India’s Best Professors

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Forex Risk Management

  • 1. Forex Risk Management Compiled by SuperProfs.com Learn from India’s Best PLreoaferns sfororms India’s Best Professors
  • 2. 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 Learn from India’s Best Professors that help control trading risk.
  • 3. Features of Forex Market Learn from India’s Best Professors  Uncontrollable  Highly 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.
  • 4. 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. Learn from India’s Best Professors
  • 5. To watch lecture videos related to Forex Risk Management, visit SuperProfs.com NOW! Learn from India’s Best PLreoaferns sfororms India’s Best Professors