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Exchange risk |
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Exchange riskUncertainty about the value of an asset, liability, or commitment due to uncertainty about the future value of an exchange rate. Unless they cover themselves in the forward market, traders with commitments to pay or receive foreign currency in the future bear exchange risk. So do holders of assets and liabilities denominated in foreign currency.Similar MatchesCurrency Exchange RiskCurrency Exchange RiskUncertainty about the rate at which revenues or costs denominated in one currency can be converted into another currency. International Petroleum ExchangeInternational Petroleum ExchangeEurope's leading energy futures and options exchange and the second largest in the world.The IPE provides a highly regulated market place where industry participants can manage their exposure to highly volatile energy prices. Incorporated in 1980, the IPE lists three main energy contracts: Brent Crude futures and options, Gas Oil futures and options and Natural Gas futures. The IPE is a Member owned exchange and clients can access the market either by becoming a Member or by using the broking services available from Members. Trades are cleared by the London Clearing House (LCH) which guarantees contract performance. The IPE is a Recognised Investment Exchange (RIE) regulated by the Financial Services Authority (FSA). Recognised Investment ExchangeRecognised Investment ExchangeAn investment exchange which meets the requirements for recognition under the Financial Services Act 1986 and is approved by the Financial Services Authority (FSA). London International Financial Futures and Options ExchangeLondon International Financial Futures and Options ExchangeA futures and options exchange, located in London, which originally dealt only in financial instruments including equities (shares), government bonds, indices (such as the FTSE 100 Index) interest rates and a wide range of currencies. In 1996, LIFFE merged with the London Commodity Exchange with unified administration and exchange systems. All trades of the merged exchange are guaranteed by the London Clearing House (LCH). LIFFE is a Recognised Investment Exchange (RIE), regulated by the Financial Services Authority (FSA). Stock Exchange Electronic Trading ServiceStock Exchange Electronic Trading ServiceThe automated trading system introduced in 1997 for the largest companies quoted on the main list of the London Stock Exchange. Trades through SETS match buyers and sellers automatically, cutting out the need for a market maker which theoretically means a narrower bid-offer spread. Smaller companies continue to use the SEAQ 'quote' book system, with market makers quoting prices to brokers and trades being done on a semi-automatic rather than fully-automatic basis. Further SuggestionsExchange rate protectionExchange rate risk Jakarta Stock Exchange exchange for physicals Exchange Rate Mechanism (ERM) Exchangeable instrument Exchange of stock Freely floating exchange rate system share exchange Baltic Exchange Chicago Stock Exchange (CHX) Foreign exchange market New Zealand Stock Exchange Foreign exchange risk Nominal exchange rate Exchange Delivery Settlement Price Bombay Stock Exchange (BSE) Exchange offer Pacific Stock Exchange Warsaw Stock Exchange Canadian Exchange Group (CEG) London Metal Exchange Rate of exchange New York Stock Exchange Floating exchange rate |
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