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Currency risk sharing |
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Currency risk sharingAn agreement by the parties to a transaction to share the currency risk associated with the transaction. The arrangement involves a customized hedge contract embedded in the underlying transaction.Currency risk sharing Similar MatchesCurrency speculationCurrency speculationTo buy or sell a currency in anticipation of its appreciation or depreciation respectively, the intent being to make a profit or avoid a loss. See speculation. Net currency exposureNet currency exposureExposure to foreign exchange risk> after netting all intracompany cash flows. Currency factorCurrency factorThe portion of a rate of return that is due to the currency in which the asset is denominated. The currency factor can be nonzero either because of currency risk or because of expected appreciation or depreciation. Currency diversificationCurrency diversificationUsing more than one currency as an investing or financing strategy. Exposure to a diversified currency portfolio typically entails less exchange rate risk than if all the portfolio exposure were in a single foreign currency. Currency riskCurrency riskRelated: Exchange rate risk Further SuggestionsUnder-valued currencyEurocurrency market Currency future Currency reallignment hard currency Artificial currency Foreign currency futures contract Foreign currency mortgage eurocurrency Currency overvaluation Currency reserves Currency Exchange Risk Virtual currency option Moscow Interbank Currency Exchange (MICEX) Currency crisis Currency in circulation Currency devaluation Vehicle currency Currency area Currency appreciation currency loan Reporting currency Currency option European Currency Unit Currency |
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