Exchange risk

 

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Exchange risk

Uncertainty 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 Matches

London International Financial Futures and Options Exchange (LIFFE)

London International Financial Futures and Options Exchange (LIFFE)

A leading market for trading options and futures on euro money market derivatives.


Exchange rate overshooting

Exchange rate overshooting

The response of an exchange rate to a shock by first moving beyond where it will ultimately settle. Thought to help explain exchange rate volatility, this was first modeled by Dornbusch (1976).


Exchange rate risk

Exchange rate risk

Exchange risk


Kuala Lumpur Options and Financial Futures Exchange (KLOFFE)

Kuala Lumpur Options and Financial Futures Exchange (KLOFFE)

Established in 1995, the Kuala Lumpur Options and Financial Futures Exchange offers equity derivative products based on underlying instruments traded on the Kuala Lumpur Stock Exchange (KLSE).


Purchasing power parity exchange rate

Purchasing power parity exchange rate

An exchange rate calculated to yield absolute purchasing power parity. Useful for making comparisons of real values (wages, GDP) across countries with different currencies. Since the purchasing power parity theory is rarely correct, this contrasts with the nominal exchange rate.


Further Suggestions

European exchange rate mechanism (ERM)
Stock Exchange Daily Official List code
Organized exchange
Real exchange rate
Stock Exchange of Hong Kong (SEHK)
Foreign exchange
Foreign exchange risk
Foreign exchange risk
Swiss Options and Financial Futures Exchange (SOFFEX)
Exchange members
Exchange offer
Exchange Rate Mechanism
Gold exchange standard
Warsaw Stock Exchange
Tokyo Commodity Exchange (TOCOM)
Principal Exchange Rated Linked Securities (PERLS)
Exchange equalization fund
Regional stock exchanges
Securities Exchange of Thailand (SET)
Real exchange rates
London International Financial Futures and Options Exchange
Exchange rationing
Exchange rate exposure
Budapest Stock Exchange
Canadian Exchange Group (CEG)


 
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