Currency hedge


 

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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).



Currency hedge

Similar Matches

Strong Currency

Strong Currency

A currency whose value compared to other currencies is improving, as indicated by a decrease in the direct exchange rates for the currency.


Currency revaluation

Currency revaluation

A deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold.


Currency overvaluation

Currency overvaluation

Applies mainly to international equities: (1) consideration that a currency is overvalued if private demand for the currency at the going exchange rate is less than total private supply (i.e., central banks are buying up the difference, supporting the value of the currency through foreign exchange intervention); (2) currency value exceeding purchasing power parity.


Currency put option

Currency put option

Contract that gives the holder the right to sell a particular currency at a specified price (exchange rate) within a specified period of time.


Common currency

Common currency

A currency that is shared by more than one country. Thus the currency of a currency area.


Further Suggestions

Foreign currency translation
currency
Currency in circulation
Over-valued currency
Foreign currency forward contract
Currency swings
Currency bloc
Currency union
Base currency
Soft currency
Currency appreciation
Net currency exposure
Currency option
Intervention currency
currency conversion
Canonical model of currency crises
European Currency Unit (ECU)
Currency selection
Foreign currency futures contract
Eurocurrency deposit
Under-valued currency
Currency swap
Multicurrency loans
Currency devaluation
Virtual currency option


 
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