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

Bilateral exchange rate

Bilateral exchange rate

The exchange rate between two countries' currencies, defined as the number of units of either currency needed to purchase one unit of the other.


Stock Exchange, Mumbai (BSE)

Stock Exchange, Mumbai (BSE)

Formerly the Bombay stock exchange, the BSE accounts for more than one-third of Indian trading volume.


Pure exchange economy

Pure exchange economy

A theoretical economy in which goods are not produced, but exist as endowments, and are then traded among consumers.


Foreign exchange swap

Foreign exchange swap

An agreement to exchange stipulated amounts of one currency for another currency at one or more future dates.


Exchange of stock

Exchange of stock

Acquisition of another company by purchase of its stock in exchange for cash or shares.


Further Suggestions

Purchasing power parity exchange rate
Stock Exchange Electronic Trading Service
Kuala Lumpur Stock Exchange (KLSE)
Exchange Traded Funds
London International Financial Futures and Options Exchange
PPP exchange rate
Stock exchanges
Exchange control
Securities & Exchange Commission (SEC)
Ration foreign exchange
Exchange of assets
Securities Exchange Act of 1934
Fixed exchange rate
Exchange rationing
Nominal exchange rate
exchange for physicals
New York Stock Exchange
Montreal Exchange or Bourse de Montreal
Exchange, The
London Metal Exchange (LME)
bill of exchange
Exchange members
Jakarta Stock Exchange
Karachi Stock Exchange
Recognised Investment Exchange


 
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