- currency hedging
- Fina method of reducing exchange rate risk by diversifying currency holdings and adjusting them according to changes in exchange rates
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currency hedging
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currency hedging — currency hedge UK US noun [C] FINANCE, STOCK MARKET ► an agreement to buy a currency at a particular rate in the future. Companies that export goods use currency hedges to be certain about the amount they will receive for particular goods when… … Financial and business terms
Currency overlay — is a financial trading strategy or method conducted by specialist firms who manage the currency exposures of large clients, typically institutions such as pension funds, endowments and corporate entities. Typically the institution will have a pre … Wikipedia
hedging — The practice of offsetting the price risk inherent in any cash market position by taking an equal but opposite position in the futures market. Hedgers use the futures markets to protect their business from adverse price changes. Selling ( Short)… … Financial and business terms
Hedging — A strategy designed to reduce investment risk using call options, put options, short selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the volatility of a portfolio, by reducing the risk of loss.… … Financial and business terms
currency hedge — Applies mainly to international equities. hedging technique to guard against foreign exchange fluctuations ( i.e., short Euro l00 mm when holding a long position of Euro l00 mm in stocks). Bloomberg Financial Dictionary * * * currency hedge UK US … Financial and business terms
Currency swap — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… … Wikipedia
Currency future — Foreign exchange Exchange rates Currency band Exchange rate Exchange rate regime Exchange rate flexibility Dollarization Fixed exchange rate Floating exchange rate Linked exchange rate Managed float regime Markets Foreign exchange market Futures… … Wikipedia
Currency crisis — A currency crisis, which is also called a balance of payments crisis, is a sudden devaluation of a currency caused by chronic balance of payments deficits which usually ends in a speculative attack in the foreign exchange market. It occurs when… … Wikipedia
Currency risk — Categories of financial risk Credit risk Concentration risk Market risk Interest rate risk Currency risk Equity risk Commodity risk Liquidity risk Refinancing risk … Wikipedia
Currency Binary — A currency trade that offers an all or nothing payoff based on a given currency exchange rate when the position reaches its expiration date. Binaries have a single payoff amount rather than the variable profit amounts found in traditional options … Investment dictionary
Hedging — Hedge Hedge, v. t. [imp. & p. p. {Hedged}; p. pr. & vb. n. {Hedging}.] 1. To inclose or separate with a hedge; to fence with a thickly set line or thicket of shrubs or small trees; as, to hedge a field or garden. [1913 Webster] 2. To obstruct, as … The Collaborative International Dictionary of English
