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.
1. Forex Risk Management
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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
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that help control trading risk.
3. Features of Forex Market
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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.
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